Paramount Skydance Secures $24B Gulf States Investment for Warner Bros. Acquisition
Paramount Skydance, led by David Ellison, has secured significant financial backing for its acquisition of Warner Bros. Discovery. The company has received commitments nearing $24 billion from three major sovereign wealth funds in the Gulf States, as reported by the Wall Street Journal.
Financial Commitments for Warner Bros. Acquisition
The Saudi Public Investment Fund (PIF) is set to contribute approximately $10 billion. The remaining amount will come from the state-controlled investment funds of Qatar and Abu Dhabi. Paramount’s agreement to acquire Warner Bros. Discovery, which boasts an estimated enterprise value of $111 billion, is awaiting regulatory approval.
Expected Timeline and Regulatory Considerations
The involved parties anticipate that the acquisition will conclude by the end of the third quarter of 2026. However, regulatory scrutiny may delay the process. Omeed Assefi, the acting head of the DOJ’s antitrust division, indicated that the deal will not be expedited due to political factors, particularly concerning the Ellison family’s connections to former President Trump.
A special shareholders meeting for Warner Bros. Discovery is scheduled for April 23 to vote on the acquisition. As per SEC filings from December 1, the Paramount offer includes the full $24 billion from the Gulf funds.
Investors and Changes in Funding Structure
Initially, Chinese gaming giant Tencent had pledged $1 billion toward this bid but withdrew due to concerns regarding foreign ownership. Tencent has since re-entered as a funding partner with new financial support, according to Bloomberg News.
Governance Rights and National Security Review
- Paramount has stated that the Middle Eastern funds will not have any governance rights or board representation linked to their investments.
- This arrangement means the deal will likely fall outside the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS).
Despite these assurances, seven Democratic senators have requested the FCC to undertake a thorough review of the foreign investments associated with the Paramount-WBD deal. Since the Gulf funds will collectively own less than 25% of the new entity, Paramount executives do not foresee issues with the FCC review process.
Moreover, Senators Elizabeth Warren and Richard Blumenthal criticized the Treasury Department for not launching a CFIUS review of the proposed acquisition. David Ellison’s father, Larry Ellison, has also committed up to $46.7 billion for this acquisition, which may alleviate the financial burden on Paramount due to the involvement of the Gulf funds.
