Paramount Skydance Corp. has been talking to investors for months about debt to fund its $110 billion Warner Bros. Discovery buyout, but delays have increased costs. Borrowing this week instead of three months ago will cost hundreds of millions of dollars a year in extra interest due to rising global inflation.

Paramount is selling about $42 billion of bonds and $9.5 billion of loans. After the buyout, it will have over $87 billion of debt. CEO David Ellison plans to cut costs by $6 billion a year, but the company’s exposure to traditional TV may hinder revenue growth.

Some investors passed on the debt deal due to execution risk. Credit Sights analysts Hunter Martin and Brian McKenna noted that "the track record for media mega-mergers is abysmal." They are concerned about the debt load and the "very aggressive" cost-cutting targets.

On Tuesday, Paramount kicked off its high-grade bond sale. Depending on the outcome, the company could pay up to $500 million a year more in interest than it would have in May. Delays from legal and trade union challenges have been settled, but 10-year Treasury yields have surged to their highest since 2007.