Gulf Funds Reportedly Near Deal to Back Paramount's Warner Bros Takeover

Paramount Skydance is reportedly nearing a deal to secure approximately $24 billion from Gulf sovereign funds to back its $81 billion equity value takeover of Warner Bros. Discovery, according to multiple media reports citing an initial story from The Wall Street Journal.

Major Middle Eastern investors, including Saudi Arabia’s Public Investment Fund (PIF), are providing capital for one of the largest media mergers proposed in recent years. The investment, reportedly structured as non-voting stakes, appears designed to navigate complex U.S. regulatory hurdles, thereby facilitating the deal's progression.

What We Know So Far

• Paramount Skydance is in advanced talks to secure nearly $24 billion in equity commitments from three Gulf sovereign wealth funds, according to a report from Reuters.
• Saudi Arabia’s Public Investment Fund is expected to be the anchor investor, contributing approximately $10 billion to the financing package.
• The total acquisition of Warner Bros. Discovery is valued at $110 billion, which includes an equity valuation of $81 billion, as reported by storyboard18.com.
• Other funds reportedly involved in the discussions include the Qatar Investment Authority and Abu Dhabi-based L’imad Holding Co.
• The proposed investments are structured as non-voting stakes, a move widely seen as a strategy to sidestep a rigorous U.S. national security review.

Paramount Warner Bros Discovery Takeover: The $81 Billion Deal

Paramount Skydance’s bid for Warner Bros. Discovery involves $24 billion in equity commitments, covering a significant portion of the deal’s $81 billion equity value. This financing arrangement would create a media conglomerate with a vast content library, including major film franchises, television networks, and a formidable streaming presence.

According to a report from MSN, Warner Bros. Discovery has stated that Paramount raised its bid to $31 per share. The board will reportedly weigh this revised offer against other potential strategic alternatives, including a possible deal with Netflix.