S&P Weighs In On Media Mega-Merger: Puts Paramount On CreditWatch Negative But Says WBD Deal Will “Materially Improve” Its Business Profile
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By Jillg366
Published on March 3, 2026.
S&P Global Ratings has placed all of its ratings of Paramount Skydance on CreditWatch with negative implications, reflecting increased leverage if the merger with Warner Bros. Discovery (WBD) proceeds. However, S&P believes the deal will significantly improve Paramount's business profile, expanding its content and enabling it to compete in the global streaming space. The agency estimates the total cost to PSKY is $111 billion, including the assumption of WBD’s debt and the $2.8 billion termination payout to Netflix. The merger of two major film studios is controversial in Hollywood and facing scrutiny by lawmakers and state AGs.
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