Executive Summary
Larry Ellison's $40.4 billion personal guarantee transforms the Paramount-Warner Bros deal from speculative M&A into a credible capital structure event. Bloomberg Intelligence credit analyst Stephen Flynn reveals that Warner Bros bonds, despite falling to junk status in July 2025, now trade as high-yield winners on takeout speculation. The guarantee addresses the board's primary objection while creating a secured debt structure that could achieve investment grade ratings. Flynn's analysis shows ...
Key Investment Opportunity
Warner Bros Discovery Credit Arbitrage
WBD bonds trading on takeout premium while secured debt structure offers investment grade potential with Oracle guarantee backstop
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