On September 29, Paramount Skydance (NASDAQ: PSKY) announced a plan to cut costs over three years. The plan calls for $6 billion in savings to help manage debt tied to its pending acquisition of Warner Bros. Discovery.
Paramount Skydance is seeking to raise approximately $52 billion through debt and loans to finance the takeover. The plan aims to capture merger synergies by consolidating operations, including technology platforms and real estate. It also aims to boost annualized EBITDA to nearly $18.7 billion.
Some analysts and credit rating agencies have questioned whether the company can meet the ambitious timeline and manage the combined company’s high leverage after the acquisition.