Paramount Seeks Nearly $24 Billion in Gulf Funding for Warner Bros Discovery Acquisition

Paramount Global is reportedly in discussions to secure equity commitments totaling close to $24 billion from several sovereign wealth funds, with Saudi Arabia's Public Investment Fund (PIF) leading the effort, to help finance its intended acquisition of Warner Bros Discovery (WBD). The Wall Street Journal shared this development, citing individuals with knowledge of the matter.

Earlier in February, the U.S. entertainment company announced it had reached an agreement to acquire its peer in a transaction valued at $110 billion, with an equity valuation of $81 billion. The parties anticipate finalizing the deal in the third quarter.

This proposed merger would unite prominent studios and networks, such as CNN and CBS, creating a larger entity capable of more effectively challenging the dominance of streaming services as viewers increasingly shift away from traditional television.

According to the report, the PIF has committed to providing approximately $10 billion to support the takeover. The potential involvement of other Gulf investors, including Qatar Investment Authority and Abu Dhabi's L'imad Holding, is also being considered.

Representatives for PIF, Qatar Investment Authority, and L’imad Holding have not yet responded to requests for comment from Reuters. Paramount Global has also declined to comment on the matter.

Sources suggest that these Gulf investors will not be granted voting rights within the new combined Paramount-Warner entity.

Paramount executives do not foresee the involvement of these funds necessitating a review by the Committee on Foreign Investment in the U.S. (CFIUS) or the Federal Communications Commission (FCC), according to The Journal's report.