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
There are all sorts of venues from which they can borrow, whether through a bond issue, borrowing from a traditional bank, loan syndication (where a bank goes out and finds a number of investors who want to invest). Such giant loans are backed by assets (movie rights and such) and anticipated revenues generated by company post-purchase.
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