The proposed $111 billion merger between Paramount and Warner Bros. Discovery is approaching completion, but concerns around debt, execution risk, and long-term industry volatility loom large. Naveen Sarma, sector lead for U.S. media and telecom at S&P Global, breaks down the opportunities and potential pitfalls ahead for the company, and he explains why S&P Global downgraded Paramount Skydance's credit rating after it clinched the WBD deal agreement.

<p>The proposed $111 billion merger between Paramount and Warner Bros. Discovery is approaching completion, but concerns around debt, execution risk, and long-term industry volatility loom large. Naveen Sarma, sector lead for U.S. media and telecom at S&amp;P Global, breaks down the opportunities and potential pitfalls ahead for the company, and he explains why <a href="https://variety.com/2026/film/news/paramount-credit-rating-lower-junk-status-warner-bros-merger-1236754967/">S&amp;P Global downgraded Paramount Skydance's credit rating</a> after it clinched the WBD deal agreement.</p>

Industry leaders converse about business deals, strategy and the future of media and entertainment.

Strictly Business

Industry leaders converse about business deals, strategy and the future of media and entertainment on Variety's weekly interview series.

<p>Industry leaders converse about business deals, strategy and the future of media and entertainment on Variety's weekly interview series.</p>

Variety's Strictly Business

Credit Risks: Top S&P Global Ratings Analyst Breaks Down the Paramount-Warner Bros. Discovery Merger

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