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Middle East Funds Back Paramount-WBD Deal
7 Apr
Summary
- Sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi are now investors.
- This investment is linked to Skydance's bid to acquire Warner Bros. Discovery.
- The merger is anticipated to conclude by the third quarter of 2026.
Paramount Skydance has announced a significant financial development in its pursuit of Warner Bros. Discovery, confirming the participation of sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi as investors. This move, detailed in an SEC filing, is described as an important milestone in the takeover process.
The investment aims to diversify Paramount Skydance's shareholder base and unlock potential strategic opportunities with the Middle Eastern funds. These institutional investors, along with LionTree, are participating in the equity syndication.
The proposed $111 billion merger would consolidate major media assets, including CBS News and HBO Max. The transaction still awaits shareholder approval and regulatory clearances.
Paramount and WBD are targeting a closing date in the third quarter of 2026. Should the merger not close by September 30, 2026, Paramount has agreed to pay a quarterly ticking fee to WBD shareholders. The non-voting shares issued to these new investors will ensure the Ellison family and RedBird maintain control of Paramount Skydance's voting shares. This structure adheres to U.S. regulatory requirements, including FCC guidelines, and is not expected to affect the merger's timeline.
