Paramount Skydance is eyeing a $111bn purchase of Warner Bros Discovery after the studio bagged 11 Oscars this year, a win that could sweeten the deal for CEO David Ellison. The acquisition would give the U.S. media mogul a vast content library and a foothold in streaming, but it also raises regulatory questions.

Ellison paid a premium, paying about 13 times Warner’s forecast EBITDA—almost twice the decade‑average multiple. The deal will leave Paramount with roughly $75bn of net debt, or about six times EBITDA, and annual interest costs exceeding $4bn. Those obligations could dent the company’s flexibility if a content war erupts.

Cost cuts are expected to save about $6bn a year, roughly a quarter of combined expenses, but revenue growth remains a hurdle. Paramount projects mid‑single‑digit top‑line growth through 2030, while streaming would need 12% annual expansion to hit a 5% group rate. Losing up to 20% of Paramount+ revenue could force price hikes.

If the takeover passes regulators and the company delivers the promised synergies, Ellison could cement a dominant media empire. However, the debt load, high interest costs, and the need for aggressive streaming growth create a fragile path. The deal’s success hinges on balancing cost savings with revenue expansion.