Skydance’s $108.4 Billion Bid for WBD Locks In $40.7B Equity Backstop; Kushner Linked to Funding, Banks Underwrite $54B Debt
A blockbuster financing package is forming around Skydance/Paramount Skydance’s all-cash offer for Warner Bros. Discovery, with the Ellison family and RedBird committing to backstop the full equity raise while Bank of America, Citi and Apollo line up up to $54 billion in debt—an M&A wave that could ripple across credit markets, the U.S. dollar and global risk sentiment.
Deal snapshot and market context
The consortium led by the Ellison family through Paramount Skydance (PSKY) has launched an all-cash tender offer for Warner Bros. Discovery (WBD) at $30 per share, valuing the deal at $108.4 billion, according to a regulatory filing cited in media reports. The filing indicates the Ellison family and RedBird Capital have committed to backstop 100% of the $40.7 billion equity capital required, while Bank of America, Citi and Apollo have agreed to provide up to $54 billion in new debt financing.
For markets, this is one of the largest media financing stacks in years. The scale will test primary credit market depth and syndication appetite into year-end, with potential widening in U.S. high-grade and high-yield spreads if risk demand softens. In FX, deal-related U.S. dollar funding needs could be modestly supportive for the greenback in the near term, particularly if banks hedge underwriting risk and dealers warehouse inventory.
Key Points
- PSKY’s all-cash tender for WBD is set at $30/sh, valuing the transaction at $108.4bn.
- The Ellison family and RedBird committed to backstop 100% of the $40.7bn equity needed.
- Bank of America, Citi and Apollo arranged up to $54bn in debt financing.
- Tencent is no longer a financing partner, a structure aimed at minimizing CFIUS review risk.
- Termination fees: $5bn payable by Paramount Skydance under certain conditions; ~$2.9bn payable by WBD under others.
- Jared Kushner is said to be involved in helping finance the PSKY bid, per Axios citing a regulatory filing.
- Former President Donald Trump has signaled he intends to weigh in on large media deals, highlighting potential antitrust scrutiny.
Financing shifts and regulatory calculus
The financing package is notably domestic-heavy after Tencent withdrew as a partner, a move that reduces the risk of a CFIUS review. While the filing suggests the structure aims to mitigate foreign investment concerns, the deal still faces antitrust and media concentration scrutiny in Washington. Former President Donald Trump has publicly flagged that mega-media tie-ups could be “a problem,” indicating greater executive-level attention on competition issues in the sector.
What it means for markets
– Credit: A multi-tens-of-billions underwriting could pressure bank balance sheets and test risk appetite. If syndication is smooth, spreads could stabilize; weak demand risks concession-heavy pricing and short-term spread widening.
– Equities: Media and streaming stocks may trade on merger-arbitrage math and consolidation narratives. Potential regulatory overhang could inject volatility.
– FX and rates: Elevated USD funding needs for underwriting and hedging may offer a near-term USD tailwind, while Treasury yields could be sensitive if supply implications or risk-off hedging emerge.
– Alternatives: Private credit’s participation via Apollo highlights ongoing substitution of bank capital, a theme supporting private credit valuations and fee income, while traditional lenders manage pipeline risk.
Next steps and timeline
Investors will watch for regulatory filings, antitrust feedback and financing syndication milestones. With termination fees of $5bn (payable by PSKY under certain circumstances) and ~$2.9bn (payable by WBD in others), transaction certainty and pace will heavily influence relative value across media equities and related credit. For FX, any extended syndication period could lengthen USD-supportive flows; for global stocks, follow-through will hinge on policymaker tone and broader risk appetite.
FAQ
What exactly is PSKY offering for WBD?
Paramount Skydance (PSKY) has launched an all-cash tender offer for Warner Bros. Discovery at $30 per share, valuing the deal at approximately $108.4 billion.
How is the deal financed?
The Ellison family and RedBird have committed to backstop 100% of the $40.7 billion equity requirement. Bank of America, Citi and Apollo have arranged up to $54 billion in new debt financing, according to a regulatory filing cited by media reports.
Is there foreign investment risk via CFIUS?
Tencent has stepped back as a financing partner. The domestic-led financing structure is designed to minimize CFIUS review risk for the transaction.
Are there termination fees?
Yes. Under certain conditions, Paramount Skydance would pay a $5 billion termination fee to WBD. Under other circumstances, WBD would pay approximately $2.9 billion.
What’s the significance of Jared Kushner’s involvement?
Axios, citing a regulatory filing, reported that Jared Kushner is involved in helping finance the PSKY bid. While not determinative for approval, the political profile could draw additional public scrutiny to an already high-profile deal.
How could this affect FX and global markets?
Large U.S. dollar funding needs and bank hedging activity may be supportive for the USD near term. Credit markets will focus on syndication depth; a smooth process supports risk assets, while strain could widen spreads and weigh on equities. The policy tone in Washington remains a key swing factor for risk appetite.
What are the regulatory hurdles?
Beyond CFIUS considerations, antitrust review is the primary obstacle. Former President Donald Trump has signaled personal interest in oversight of large media combinations, implying elevated scrutiny and uncertain timelines.
This report was prepared by BPayNews for traders and investors tracking the intersection of M&A, credit markets and FX flows.
Last updated on December 8th, 2025 at 04:46 pm
