By ABUBAKAR YUNUSA
Paramount Skydance is in advanced talks to secure nearly $24bn in equity commitments from Gulf sovereign wealth funds to support its proposed $110bn takeover of Warner Bros. Discovery.
According to a Wall Street Journal report, the deal could rank among the largest media mergers globally.
Saudi Arabia’s Public Investment Fund is expected to lead the financing package, with a potential contribution of about $10bn.
Other prospective investors include the Qatar Investment Authority and Abu Dhabi-based L’imad Holding, sources familiar with the discussions said.
The negotiations highlight increasing Middle Eastern interest in global media assets as the streaming era reshapes industry competition.
Paramount Skydance had announced in February that it reached an agreement to acquire Warner Bros. Discovery in a transaction valued at $110bn, including an equity valuation of $81bn.
The companies are targeting completion in the third quarter, subject to regulatory approvals and financing arrangements.
The involvement of sovereign wealth funds is seen as a strategic effort to de-risk the transaction while securing long-term capital without diluting control.
Sources indicated that the Gulf investors are unlikely to receive voting rights in the combined entity, a structure that may help ease potential regulatory concerns in the United States.
Paramount executives reportedly do not expect the participation of the Gulf funds to trigger a review by the Committee on Foreign Investment in the United States or the Federal Communications Commission, although regulatory scrutiny remains a key consideration.
