Paramount seeking $24 bn from Gulf for Warner purchase
Paramount Skydance is negotiating to obtain signed equity commitments nearing $24 billion from three sovereign wealth funds, spearheaded by Saudi Arabia, to support its acquisition of Warner Bros Discovery, as reported on Sunday. The US entertainment giant in February announced its agreement to acquire its peer in a $110 billion deal, which carries an equity value of $81 billion, with expectations to finalize the transaction in the third quarter.
The proposed merger aims to consolidate significant studios and networks, including CNN and CBS, thereby enhancing their competitive stance as streaming services increasingly attract viewers from conventional linear television. In support of the takeover, Saudi Arabia’s Public Investment Fund has reportedly committed approximately $10 billion, according to sources. The other supporters are expected to encompass Qatar Investment Authority and Abu Dhabi’s L’imad Holding, as reported.
Paramount refrained from providing any commentary. The Gulf backers will lack voting rights in the newly formed Paramount-Warner entity, according to reports. According to the reports, Paramount executives anticipate that the involvement of the funds will not prompt a review by the Committee on Foreign Investment in the U.S. or the Federal Communications Commission.
