Paramount CEO says Warner Bros tie-up to carry $79 billion net debt, no cable asset sales planned

March 2 (Reuters) - Paramount Skydance CEO David Ellison said connected Monday its woody for Warner Bros volition permission the combined institution with astir $79 cardinal successful nett indebtedness and that determination were nary plans to divest oregon rotation disconnected immoderate of ‌the cablegram assets astatine this time.

Ellison made the comments aft Paramount finalized the $100 billion, oregon $31-per-share, bid for Warner Bros by signing ‌an statement aboriginal connected Friday, aft Netflix declined to rise its offer.

The merged entity volition person 1 of the industry's deepest libraries of commercially proven intelligence property, uniting ​franchises specified arsenic "Game of Thrones", "Mission Impossible", "Harry Potter", "Top Gun", the DC Universe and "SpongeBob SquarePants".

It would besides bolster Paramount's streaming concern by giving it the standard and firepower needed to vie much efficaciously successful a marketplace dominated by Netflix.

"Unlike Netflix, Paramount's concern could usage a changeable successful the limb and an contiguous boost to execute the greater standard it needs," said Matthew Dolgin, elder analysts astatine Morningstar.

The contention for Warner Bros' workplace and streaming assets heated ‌up implicit months, with Paramount and Netflix trading ⁠rival takeover bids.

Netflix struck first, signing a woody aboriginal successful December to bargain those assets, excluding cablegram networks, for $27.75 per share, oregon $82.7 billion.

Paramount countered aggressively with a hostile bid for the full company, precocious sweetening it to $31 ⁠per share, boosting regulatory interest and offering to screen Warner's breakup interest to Netflix.

After Warner's committee deemed the Paramount connection superior, Netflix declined to lucifer the offer, stepping backmost from the high-stakes conflict for assets, including DC Comics, HBO and HBO Max.

A woody betwixt Paramount and Warner Bros would besides region ​the ​uncertainty surrounding the worth and hazard of the cablegram networks spinoff that Warner ​shareholders would person retained nether the Netflix proposal, reducing ‌one of the cardinal variables that had added to doubts astir Netflix's bid.

The combined entity is expected to nutrient astatine slightest 30 theatrical films a year, portion maintaining some Warner Bros and Paramount studios.

Paramount paid the $2.8 cardinal termination interest that Warner owed Netflix connected Friday.

Paramount connection remains afloat financed, including $47 cardinal successful equity from the Ellison Family and RedBird Capital Partners, with further indebtedness commitments of $54 cardinal from Bank of America, Citigroup and Apollo.

The woody is expected to adjacent successful the 3rd 4th this year.