Paramount Skydance is in advanced talks to secure nearly $24 billion in equity commitments from major Gulf sovereign wealth funds as it pushes forward with its planned $110 billion acquisition of Warner Bros. Discovery.
According to The Wall Street Journal, the proposed financing could become one of the largest funding packages backing a media merger globally.
Saudi Arabia’s Public Investment Fund is expected to lead the investment, potentially contributing around $10 billion. Other interested parties include the Qatar Investment Authority and Abu Dhabi-based L’imad Holding, reflecting growing Middle Eastern interest in global media assets.
The deal itself, first announced in February, values Warner Bros. Discovery at approximately $110 billion, including an equity valuation of $81 billion. The companies are targeting a third-quarter close, pending regulatory approvals and final financing arrangements.
The involvement of sovereign wealth funds is seen as a strategic move to reduce financial risk while providing long-term capital support. Notably, the Gulf investors are expected to take non-voting stakes in the combined entity, a structure designed to minimise regulatory hurdles in the United States.
Paramount executives reportedly believe the arrangement may avoid triggering reviews by key regulators such as the Committee on Foreign Investment in the United States and the Federal Communications Commission. However, scrutiny is likely to remain given the size of the transaction.
The acquisition push aligns with Paramount’s broader strategy to scale up amid intensifying competition in the global streaming market, where rivals such as The Walt Disney Company and Universal Pictures continue to dominate.
Backing for the deal has also been linked to high-profile investors, including Larry Ellison, while Tencent Holdings has reportedly explored participating as a passive investor.
Neither Paramount Skydance nor the potential Gulf investors have officially confirmed the discussions. Still, the scale of the talks underscores the increasing role of global capital in reshaping the future of the media and entertainment industry.
