Warner Bros. Discovery(US:WBD) 智通财经网·2026-02-28 03:54Core Viewpoint - The acquisition of Warner Bros. Discovery by Paramount Global, valued at $111 billion, will exert pressure on its credit rating despite potential long-term debt reduction for the merged entity [1][2] Group 1: Acquisition Details - Paramount Global successfully reached an agreement to acquire Warner Bros. Discovery, outbidding Netflix after months of competition [1] - The acquisition offer was increased from $30 to $31 per share, a full cash transaction, surpassing Netflix's offer of $27.75 per share [1] - Warner Bros. Discovery's board stated that Paramount's new acquisition proposal is more favorable for shareholders compared to the earlier agreement with Netflix [1] Group 2: Credit Rating Implications - S&P Global Ratings currently assigns a "BB+" rating to Paramount Global, the highest level within the junk rating category [1] - The combined company is expected to carry a substantial debt load of approximately $80 billion, leading to significant pressure on its credit rating [2] - The leverage ratio, which measures the company's debt relative to earnings, could reach 7 times or higher, exceeding acceptable levels for maintaining the "BB+" rating [2] Group 3: Financing and Debt Management - The acquisition will be partially financed through $57.5 billion in debt, sourced from major financial institutions including Bank of America, Citigroup, and Apollo Global Management [2] - To reduce leverage levels, the merged entity may consider selling overlapping assets and cutting costs [2]