Main points
- Paramount is looking to raise nearly $24 billion from three sovereign wealth funds from the Middle East, including Saudi Arabia, for a deal with Warner Bros. Discovery.
- The main investor could be the Public Investment Fund with an investment of about $10 billion, while other potential participants include Qatar Investment Authority and L'imad Holding.
Paramount seeks $24 billion for Warner Bros deal / AP
Paramount is actively seeking money to complete a massive deal with Warner Bros. Discovery — and it appears to be banking on investors from the Middle East. It's about nearly $24 billion, which could come from three sovereign wealth funds, including Saudi Arabia.
What Persian Jam funds will give Paramount money?
Arab funds will help close one of the largest deals in the media industry in recent years, writes Reuters.
Back in February, Paramount announced that it had agreed to buy a stake in its rival in a deal that could value the company at $110 billion. The stake itself is valued at about $81 billion. The deal is expected to close in the third quarter.
If all goes according to plan, the combined company will be able to bring together powerful brands like CNN and CBS under one roof, giving it a stronger position to compete for viewers increasingly drawn to streaming services.
- The Public Investment Fund may be the main donor – according to sources, the fund is ready to invest about $10 billion.
- Qatar Investment Authority and L'imad Holding are also named among the potential participants.
Gulf investors are not expected to have voting rights in the new combined company , and their participation will not require additional review by US regulators, as each fund's stake will be significantly less than 25%.
What is known about the deal between Paramount and Warner Bros.?
According to Reuters, the deal was the final point in the fight for Warner Bros. assets. The company's Chief Revenue and Strategy Officer Bruce Campbell said that Netflix had the right to double the competitor's offer, but decided not to do so.
Netflix had the legal right to double Paramount's offer. As you all know, they ultimately decided not to. This led to the signing of the deal with Paramount this morning,
– Campbell noted.
The total amount of the deal is 110 billion US dollars. At the same time, Paramount and Warner Bros. did not officially comment on the signing of the agreement in response to journalists' inquiries.
The deal is considered one of the biggest transformations in Hollywood's media industry in recent years. The merger will create one of the world's largest film studios and give Paramount access to iconic Warner Bros. franchises, including “Fantastic Beasts” and “The Matrix.”
Experts are paying special attention to the streaming sector. A possible merger of HBO Max and Paramount+ services is expected, which could strengthen the company's position in the market and create more serious competition for Netflix.
What is known about the sale of Warner Bros?
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Paramount Skydance, Comcast, and Netflix are all competing to acquire Warner Bros., with Paramount wanting to buy the entire company and Comcast and Netflix interested in the film and television library. Netflix has even promised to release the studio's films in theaters if it succeeds in buying Warner Bros.
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On December 5, Netflix announced its $82.7 billion acquisition of Warner Bros., including the film and television studios HBO Max. The deal was expected to close after the spinoff of WBD's global networks division, Discovery Global, into a new public company in the third quarter of 2026.
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Filmmakers later called on the US Congress to intervene, warning of a crisis in Hollywood if the merger were to occur due to Netflix's potential impact on the movie theater market. The reason was fears of mass layoffs and antitrust issues.