Paramount Skydance secures $24B in commitments from Gulf funds for Warner Bros. Discovery bid

As archetypal reported by the Wall Street Journal, Saudi Arabia’s Public Investment Fund will supply astir $10 billion, portion state-backed funds from Qatar and Abu Dhabi volition proviso the remainder of the $24 cardinal successful equity commitments. The overseas investors are not expected to instrumentality governance roles oregon seats connected the board.

The acquisition would harvester large media assets, including HBO and CNN, nether the Paramount Skydance umbrella. Paramount executives person reportedly instructed employees to hole for a imaginable woody adjacent by the extremity of July, portion the transaction is inactive taxable to regulatory reappraisal successful Europe. Warner Bros. Discovery has scheduled a peculiar shareholder gathering connected April 23 to ballot connected the sale.

The Gulf funds’ engagement is seen arsenic strengthening Paramount Skydance’s presumption by providing important equity enactment alternatively than relying solely connected debt. The minority, non-voting quality of the stakes whitethorn besides assistance easiness regulatory scrutiny successful the United States.

Gulf sovereign wealthiness funds person progressively participated successful planetary media deals arsenic portion of broader efforts to diversify investments beyond the vigor sector.

Shares of Paramount Skydance traded up astir 9% connected the news.