Wall Street Sees Resurgence of Massive Debt-Fueled Megadeals in 2025
In 2025, Wall Street has witnessed a significant comeback of large-scale debt-fueled mergers and acquisitions, with deals valued at $10 billion or more reaching record levels. Notable transactions include Paramount's hostile bid for Warner Bros. Discovery and the leveraged buyout of Electronic Arts. This surge is driven by increased lending from banks and private-credit funds, offering acquirers multiple financing options. While these deals promise substantial returns for shareholders, they also pose heightened risks for bond investors amid an exuberant credit market.