When Paramount Chief Executive David Ellison unveiled his company’s $81 billion deal for Warner Bros. Discovery, he touted a new golden era for Hollywood — one built on scale, technology and a promise to release at least 30 theatrical movies a year.
His plan has little margin for error.
The combined company is set to emerge with nearly $80 billion in debt — a burden that could weigh on decisions ranging from content spending and streaming investments to news operations and sports rights.
Its net debt is projected to equal roughly 6.5 times annual earnings before interest, taxes, depreciation and amortization after the deal closes as soon as this month, a level that analysts consider high for a media company.
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