For instance, when Disney bought Fox for $71.3 billion, how did they do that? I assume they did not have $71.3 billion buried in the ground. And if its just a loan from a bank, is there a really ever a limit to what a bank could lend out technically?
In: Economics
Most of those big big deals are ‘Cash and Stock’
Most of Disney’s purchase was giving Fox shareholders stock in Disney.
But most corporate loans are bonds, Disney in particular has almost $40 billion of bonds outstanding.
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