Paramount Skydance had said that sovereign wealth funds from the Middle East would invest in its bid for Warner Bros Discovery and a popular business outlet has reported the amount that has been secured by the company whose main investors include Oracle founder Larry Ellison and his son David Ellison who leads Paramount Skydance. The media giant strengthened its hold on the industry after it outbid Netflix to emerge triumphant as the new owner of WBD.
The Wall Street Journal reported that Paramount has secured close to $24 billion in commitments from three Middle Eastern sovereign wealth funds. The entire deal for the acquisition of Warner Bros Discovery is expected to cost $110 billion.
Oracle founder, Larry Ellison, who is one of the wealthiest global billionaires, has already committed up to $46.7 billion for securing WBD. The father of David Ellison who is the CEO of Paramount Skydance, is the major investor in the deal and sovereign wealth funds from the Gulf are also expected to be large investors in the deal.
WSJ said that Saudi Arabia’s Public Investment Fund (PIF) will provide approximately $10 billion while the remaining $14 billion will be invested by the Qatar Investment Authority and the L’imad Holding Co funded by Abu Dhabi, according to its sources.
Earlier, in an SEC filing Paramount said that the three Middle Eastern sovereign wealth funds had agreed “to forgo any governance rights — including board representation— associated with their non-voting equity investments.”
Although some Congresspersons have asked for a review by the FCC, the deal is expected to go through as the sovereign funds will own much less than 25% of the combined company.
Paramount’s deal with Warner Bros Discovery is expected to close this summer without any restrictions. President Donald Trump is in favour of the deal. The merger will make Paramount a giant in the entertainment and media industry, not only in the US but also across the globe as WBD has major assets that will add immense value to the original company.
