WBD Acquisition Thread
- Thread starter Moe
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Moe
Traveler Ness
Toobad for Ellison to not experience the opportunity with cable TV business when it was infancy in 1980s.
He would be young child at that time. Silent (his dad) and baby boomers had a lot of influence with cable TV. Gen X and millennials were significant viewers too.
Ellison is going to find themselves to have a lot of problems after merger is finalized and as for political favoritism, they will be sorry when political evolve and changes that isn't in their favor as like in 2025-2026.
lowell
Well-Known Member
@Moe A research analyst recently studied the financials behind the deal and even thought it's going to be dicey for Skydance but I guess Gerry Cardinale hates it when someone gives reasonable takes that questions any of RedBird's & the Ellisons' risky unsound decisions, lol (the fact that he name-checked RJR Nabisco doesn't give any good vibes in general):
"Will the Ellisons fork over another $25 billion?: Paramount Skydance’s $111 billion acquisition of Warner Bros. Discovery isn’t slated to close until the end of the third quarter, but Wolfe Research analyst Peter Supino has already identified an interesting wrinkle: According to his March 20 research report, PSKY should raise as much as $25 billion in new equity soon after the deal closes, primarily to begin paying down the combined company’s staggering $79 billion debt load.
This hypothetical fundraise and debt service would help ParaBros make meaningful strides toward becoming an investment-grade-rated company. “Paramount’s bid to become a vertically integrated, diversified media behemoth requires significant investment in content and distribution,” Supino wrote. “The Ellison family’s long-term focus and unique incentives explain Paramount’s plan to proceed from the closing of the Warner merger with an eye-watering $79B of debt, more than 6.5x pro forma combined EBITDA. At the same time, Paramount has communicated a desire for an investment-grade credit rating and a substantial public float of its equity.” Ergo, the need to raise new equity pronto, post-closing—which would signal to the market that the Ellisons are serious about debt reduction, achieving an investment-grade credit rating, and increasing the public float for the ParaBros stock.
Supino figures that without the equity raise, the Ellisons and RedBird Capital will own 83 percent of the company, with the public shareholders owning the remaining 17 percent. Of course, the thin public float of PSKY tends to exacerbate the fluctuations in the company’s stock price. So far in 2026, the stock is down 34 percent. The Ellisons may not care that it’s taken a big hit this year, but other PSKY shareholders probably do—including, presumably, those Free Press shareholders who took PSKY stock as consideration for Paramount’s $150 million acquisition of Bari Weiss’s newsletter company.
According to Supino, a $25 billion PSKY–WBD equity raise would lower the company’s leverage to 4x EBITDA and increase the public ownership of PSKY’s stock to 51 percent, which would vastly increase the stock’s float and liquidity—and, presumably, its value.
He wrote that within three years of closing the merger, ParaBros would need to pay down $38 billion in debt to get to a desired, investment-grade-worthy 3x pro forma EBITDA.
He posited that plenty of debt could be paid off over time from an equity raise, the company’s cashflow (generated primarily from its linear TV assets), and the $5 billion or so in cash on its balance sheet. “We believe this is achievable so long as synergies drive pro forma free cashflow to ~$10B by 2030,” he wrote—a notably higher target for “synergies” than the $6 billion that PSKY management has cited so far. In short, it seems like the forthcoming Hollywood bloodbath will get only bloodier, especially if Roger Goodell forces the Ellisons to fork over an additional billion-ish dollars a year for NFL rights.
It’s all starting to add up: The ParaBros debt, the higher price for crucial programming, the need for a larger public float, and the desire for an investment-grade credit rating ensure that RedBird’s Gerry Cardinale—the financial architect behind this deal—will be kept very, very busy trying to reengineer the company’s capital structure soon after the behemoth closes. The WBD shareholders, meanwhile, are scheduled to vote on the PSKY deal on April 23. (Usual disclosure: Due to a recent transaction, David Zaslav is a de minimis shareholder in Puck; RedBird is a minority investor.)
In an interview, Cardinale called Peter’s analysis a “little premature” and a bit superficial. “There’s got to be a re-rating of the stock,” he said of PSKY, noting that they could have taken it private but decided to keep it public—which means “we’ve got to deal with this commentating from the sidelines.” Everyone, he said, says big media deals don’t go well. But, he continued, “I’m very financially sophisticated, and if anybody thinks I’m going into this like a cowboy over-levering this thing—I don’t have RJR Nabisco on my hands here. We have a real company with real synergies that we’re executing on. We’ve already shown it in the short time that we’ve owned Paramount.”"
Ellison’s $25B Option & A Nantucket Knifing
William D. Cohan Welcome back to Dry Powder. I’m Bill Cohan. Tonight, something a little different… In addition to the latest update on the saga unfolding between our boy Zaz and the Ellisons, I’m bringing you a special piece that I recently published in Air Mail, which joined Puck late last...
puck.news
Plus, investors aren't buying the words of Middle Eastern wealth funds officials 100% because the U.S. regional war's next steps can be wildly unpredictable:
"Gulf officials had a clear line for the US business community gathered in Miami this week at a Saudi Arabia-backed investment conference: stay calm and keep investing in the region.
The cautious pitch, delivered four weeks into a regional war sparked by the US-Israeli attack on Iran, marked a sharp contrast to a year ago when American investors were promised a new dawn of co-operation between the US and the oil-rich Gulf.
Global investors whose travel to the region has been disrupted by the conflict said they appreciated the effort made by officials from Saudi Arabia, Qatar and the United Arab Emirates to reassure them about the future.
But behind the scenes of the event, entitled Future Investment Initiative Priority Miami, the mood was noticeably different.
People who met privately with Gulf officials said the tone was far more worrying. Some warned that if the war dragged on beyond April it could have a greater impact on the kingdom’s economy and its ability to continue investing abroad at the same pace.
Gulf officials publicly spoke about unity between Saudi Arabia, Qatar and the UAE but acknowledged they were being affected by the conflict. “The Qataris are suffering more than they expected and they can’t keep going like this for much longer,” said a top banker in Miami. “The same is true for Abu Dhabi.”
But there were concerns that some of the deals agreed by Gulf-backed funds with US companies, such as the acquisition of Electronic Arts by PIF or financing for Paramount’s $110bn acquisition of Warner Bros Discovery, could be affected if the conflict continued.
A person who travelled from the region to attend the conference said: “At the moment everything seems unchanged but at some point if it becomes a decision between defending and supporting their people or back a video game deal it won’t take long for them to delay or cancel existing commitments.”"
"The company anticipates at least $6 billion in cost savings from its proposed acquisition of Warner Bros. Discovery, which the companies expect to close in the third quarter. The industry is bracing for massive jobs cuts, which Ellison has played down and did again Friday, insisting the combined company will operate more efficiently but also grow."
David Ellison On Cost Savings, Growth, The Tech Stack & AI As WBD Merger
David Ellison said savings from the Skydance-Paramount merger will significantly exceed the $3 billion initially projected with more to come from WBD.deadline.com
and we get the film version of elon musk which is David Ellison himself
I hope this fails
Your ambitions are too high Ellison, aren't they?
In semi-related news, Oracle just announced mass layoffs.
nypost.com
This is going to be a problem if Larry wants to pay for his son's vanity project.
Bloodbath at Oracle as staff stunned by brutal 6 a.m. layoffs email
Oracle Corporation, a major Bay Area tech employer in California owned by Larry Ellison, laid off staff globally and delivered the news via email.
nypost.com
This is going to be a problem if Larry wants to pay for his son's vanity project.
If the AI bubble will continue bursting....... I'm sure they'll give up on the acquisition.
Insidus
Well-Known Member
I think Paramount needs to pray that the deal gets finalised by September to avoid paying those incentives.
Moe
Traveler Ness
It is very unlikely for deal to be finalized by September because major merger take a lot of time, also don't forget about regulators in other countries. Get done by September is very impossible timeframe.
Don't believe Ellison's word because he is too overambition and he won't admit that merger would be flawed.
Not only US is reviewing the PSKY-WBD acquisition, but also Canada, for about a week:
mobilesyrup.com
Competition Bureau reviewing Paramount's Warner Bros. acquisition
The agency will have to determine whether divestiture is necessary, especially since the entertainment giants do a lot of business in Canada.
mobilesyrup.com
Insidus
Well-Known Member
I do have a story that I kept in the vault for sometime maybe I could as well brush it up I presuming they'll be told to sell NickelodeonNot only US is reviewing the PSKY-WBD acquisition, but also Canada, for about a week:
Competition Bureau reviewing Paramount's Warner Bros. acquisition
The agency will have to determine whether divestiture is necessary, especially since the entertainment giants do a lot of business in Canada.
CBS Sports & TNT Sports Will Merge Together Later This Year If Paramount's & Warner Bros. Discovery Merger Gets Approved | Cord Cutters News
Paramount and Warner Bros. Discovery have outlined plans to integrate their respective sports divisions, CBS Sports and TNT Sports, during the third quarter of 2026, according to a report from Puck News. This consolidation forms part of Paramount’s broader acquisition of Warner Bros. Discovery...
cordcuttersnews.com
I'm very curious what name would have the merged channel.
CBSTNT Sports, surely? Alternatively, Eurosport that isn't European. So... Worldsport?CBS Sports & TNT Sports Will Merge Together Later This Year If Paramount's & Warner Bros. Discovery Merger Gets Approved | Cord Cutters News
Paramount and Warner Bros. Discovery have outlined plans to integrate their respective sports divisions, CBS Sports and TNT Sports, during the third quarter of 2026, according to a report from Puck News. This consolidation forms part of Paramount’s broader acquisition of Warner Bros. Discovery...
I'm very curious what name would have the merged channel.
Or GlobalSports. Hopefully Eurosport won't close after the acquisition.
Confirmed Paramount mergers after the Warner acquisitionCBS Sports & TNT Sports Will Merge Together Later This Year If Paramount's & Warner Bros. Discovery Merger Gets Approved | Cord Cutters News
Paramount and Warner Bros. Discovery have outlined plans to integrate their respective sports divisions, CBS Sports and TNT Sports, during the third quarter of 2026, according to a report from Puck News. This consolidation forms part of Paramount’s broader acquisition of Warner Bros. Discovery...
I'm very curious what name would have the merged channel.
Paramount+ and HBO Max + Discovery+
CBS News and CNN
CBS Sports and TNT Sports
I’m sure Cartoon Network USA will be shut down. The channel broadcasts only until 6:00 PM, and all the rest of the time is given to Adult Swim.
Didn't hear about this one getting merged.
For the moment we know that CNN will continue to exist even after the acquisition, so in this case we can say it's unclear.
Cinema United Urges State AGs to Scrutinize Paramount-WBD Merger
Cinema United sent a letter to state attorney generals urging them to scrutinize and potentially block the $110 billion Paramount-WBD merger.
www.thewrap.com
First Netflix, now they also criticize Paramount. Very little impact though, in my opinion.
Insidus
Well-Known Member
Could as well keep the CBS trademark TNT Sports hasn't been around for that long. I mean another scenario is them keeping both trademarks but content wise that merges.CBS Sports & TNT Sports Will Merge Together Later This Year If Paramount's & Warner Bros. Discovery Merger Gets Approved | Cord Cutters News
Paramount and Warner Bros. Discovery have outlined plans to integrate their respective sports divisions, CBS Sports and TNT Sports, during the third quarter of 2026, according to a report from Puck News. This consolidation forms part of Paramount’s broader acquisition of Warner Bros. Discovery...
I'm very curious what name would have the merged channel.
On the international front, Cartoon Network is doing alright I can imagine them scaling back on Cartoonito and using Nick Jr. for Batwheels. I don't see them closing down Cartoon Network or Cartoonito considering how much revenue they make from them I can see them close Boing and Boomerang considering Nicktoons is available in more markets including WBD kids markets.
I was thinking of only their Nickelodeon European feed similar to what happened with Disney and A+E Networks.
Moe
Traveler Ness
There is major incident with Oracle but it is unlikely to impact the Paramount-WBD merger for now.
but if war continue to drag further that cause AI bubble to pop, so it will affect Paramount-WBD if Larry pull the money and his son would have to find a new loan.
but if war continue to drag further that cause AI bubble to pop, so it will affect Paramount-WBD if Larry pull the money and his son would have to find a new loan.
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But more exciting will be THIS! A new documentary about CN coming soon next year and looks like they even aknowledge Cramp Twins 
Everyone applause these two characters, for soon getting their own spin-off full animated series!!! (who would have expected a series with PB and Marceline anyway? I know they have an upcoming comic book series which will go well with)
Watched Toy Story 5 today. It felt like another awesome escapade for the characters, while also they taught an important lesson: it's ok to be different, especially if you still like to play with toys. Lily turned from an antagonist to a hero of the movie, because of realising exactly that.
