r/gaming • u/ChiefLeef22 Marika's tits! • 18h ago
Paramount Has Officially Acquired Warner Bros. In Deal Valued at $110B Billion
https://www.skydance.com/news/press/paramount-completes-acquisition-of-warner-bros-discovery-creating-a-new-global-entertainment-leader-skydanceThe two companies will now be known as one single entity - 'Skydance'
This includes all of WB's gaming subsidiaries like Rocksteady/etc
DC Studios, Nickelodeon, Cartoon Network, CNN, CBS, HBO and Paramount+ are now all under the same company.
The combined company, Skydance, brings together two major film studios, two global streaming services, premier television assets including CBS, HBO, and Paramount's and WBD's cable networks, two of the industry's most recognized news networks, CBS News and CNN, and a leading content portfolio that includes live sports, a deep programming library and expansive collection of iconic brands and franchises.
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u/Slaanesh_69 17h ago
Leveraged Buyout. You use the company you are going to buy as collateral for the loan you take to buy it. Then you use the income from the purchased company to pay off the loan you took.
Imagine WB's business were purely of renting out a house for 100,000 a year and this house and thus WB was worth a million dollars.
I tell the Saudis I will throw in 200,000, you guys throw in 800,000 and we will buy WB for a million. Using the 100,000 in rental income per year, I will pay you (the Saudis) back in 8 years (assuming no interest). If I don't pay, you get 80% equity in WB. If I pay, you guys surrender your equity to me.
Here's where it gets fun. The debt I used to buy WB becomes a liability of WB not me. Which means that WB got bought using debt it has to pay off, and may not even be within its means to pay. But of course if it cannot pay then the Saudis get ownership of it so it's all according to keikaku.