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‘Just hours after Paramount Skydance issued $52B of debt to fund the biggest Hollywood buyout ever, investors were nursing hundreds of millions in losses, triggering a flurry of angry calls from money managers to Wall Street banks that underwrote the debt.’ www.bloomberg.com/news/article...

bloomberg.comAngry Bondholders Flood Wall Street With Complaints on Paramount LossesJust hours after Paramount Skydance Corp. issued $52 billion of debt to fund the biggest Hollywood buyout ever, investors were nursing hundreds of millions of dollars in losses, triggering a flurry of...

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"Another trader said they put their feelings bluntly to Bank of America: Don’t sell bonds that go down immediately — we are not in the business of losing money." Ouch. The bond community is small and has a long memory.

Bondholders in mortgage backed securities got blasted in 2008. Long memory? Uh, you sure about that? Is that your final answer? They read like suckers born every minute to me, IMO. BTW, wanna buy a bridge?

True, but this article is about underwriters misrepresenting the demand for new issuance of a bond. There's a chart that shows how the issue's demand fluctuated before it came to market. You're talking about creditworthiness; I'm talking about marketing and the demand vs. supply of a new issue.

Surely they could have seen that move coming...? Paramount/Skydance principals weren't about to use their OWN money to pay for that! That's not how millionaires become billionaires! They do it with OTHER people's money!

Honey, you ain’t seen nuthin’ yet. Just wait till the dust settles & the viewership aka streaming service premiums tank. That 52B will eat them alive. It’s up to us to make that happen!!!

I refuse to help bail out the next too-big-to-fail financial disaster. Americans have been the backup insurance for mega corporations and banks that have been gambling with borrowed money.

To be totally honest...fuck em. What did they think they were buying into? An entity with a shed load of debt, stuck with dying linear assets, well behind competitors like Disney or Netflix and hugely unpopular politically and a possible target for break up by a future democrat administration.

Because so many large companies are staking their survival on the AI boom becoming real. "We put AI in your tea kettle!" "I hate that. Why do I need this? I put the kettle on the range, it makes hot water. Why AI?" "Because we're putting AI in your range!" "No!" "Just take the AI!"

Way to go CA... feels like those investors should sue the state for allowing it to go through. Oh well, rich fucks getting fucked by a different rich fuck is probably fine.

Don't worry, Ellison family never plans to pay off this debt, it's going to be folded into Crypto and Crypto banking, and a digital shell game will protect the real value assets in an offshore holding company. They default in upcoming, inevitable financial crisis, b/o washes debt, no consequences.

Can someone here who actually understands economics explain to me how debt and bonds even work in such a situation? Cuz I cannot wrap my head around the idea of debt being used to FUND something. How is owing so much money ever a good thing?

Some of the bonds they recently offered will pay 8% interest to buyers. If the company stays solvent, investors win. And the Ellisons don’t have a lot of cash, so they’re having to borrow against Oracle stocks and get outside investors to fund the merger.

I agree. There’s a reason why this merger was unpopular. Oracle stock is dropping in price and there’s a real risk they won’t be able to repay the debt. That’s why the bond interest is so high. It’s a riskier investment.

There are zero honest business people & zero honest politicians in the US. Mostly very few honest Americans. The average hard working stiff doesn’t stand a chance. The true American dream is just not getting caught.

Paramount Skydance's record $52 billion bond sale to fund its mega-buyout quickly turned sour, dropping in value within hours. This left debt investors with steep paper losses exceeding $200 million and sparked widespread anger toward the Wall Street banks that underwrote the offering.

we need to rip apart these companies... like really we need to tear these super merger companies apart... they own too much AND the quality of products are NOT getting better AT ALL...

No. To be an oligarch you have to crave power. It’s possible to be ultra-wealthy and not an oligarch. I don’t think Buffet seeks to control anything so he’s not one. Branson, the same. Not sure if you need to be corrupt to be one either but it sure seems like it.

I like that Buffet, Branson, Dolly Parton Mackenzie Scott et al exist. They are living proof that you can become incredibly wealthy, extremely successful and choose not to be colossal arse. *They* give me hope.

I adore her and Melinda Gates. My problem is that some of the giving theyre doing comes across as guilt ridden. So many people need to know and understand that a NDA is tonprotect works not people from being prosecuted from illegal activity especially with evidence of rape and sec trafficking.

I love how Netflix was ready to buy WB w/out international money ties, yet Paramount/SkyDance has been making the middle eastern rounds with their hands out like neighborhood kids selling candy bars for their school & sports teams— and still can’t get their financial shit together…