Paramount Skydance eyes $24 billion Gulf funding for Warner Bros Discovery deal – Storyboard18

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As Paramount Skydance pushes ahead with one of Hollywood’s biggest mergers, it is now lining up nearly $24 billion from Gulf sovereign funds to help finance its takeover of Warner Bros Discovery, according to a Wall Street Journal report.
Paramount Skydance is in discussions to secure these equity commitments from three sovereign wealth funds led by Saudi Arabia, as it works to fund its $110 billion acquisition of Warner Bros Discovery. The deal, announced in February, carries an equity value of $81 billion and is expected to close in the third quarter.
The proposed merger would bring together major media assets, including CNN and CBS, as the combined entity looks to strengthen its position amid a shift in audiences from traditional television to streaming platforms.
According to the Wall Street Journal, Saudi Arabia’s Public Investment Fund is expected to contribute about $10 billion toward the financing. Other potential investors include the Qatar Investment Authority and Abu Dhabi-based L’imad Holding.
The report added that the Gulf investors are expected to hold non-voting stakes in the merged company. Paramount executives do not anticipate that the involvement of these funds will trigger reviews by the Committee on Foreign Investment in the United States or the Federal Communications Commission.
The transaction itself emerged from a high-stakes bidding battle earlier this year. Paramount’s offer of about $31 per share ultimately beat a rival proposal from Netflix, which chose not to raise its bid, clearing the way for the current agreement. 
The acquisition is among the largest shake-ups in the media industry and would create one of the biggest film and television companies, giving Paramount access to Warner Bros Discovery’s library of major franchises. 
The deal is still progressing through approvals. Warner Bros Discovery shareholders are scheduled to vote on April 23 on the merger, with regulatory scrutiny expected from competition authorities in the United States and Europe before completion. 
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