Key Moments
- Paramount Skydance (NASDAQ:PSKY) has obtained about $24 billion in equity commitments from three Gulf sovereign wealth funds, according to a Wall Street Journal report.
- Saudi Arabia’s Public Investment Fund is reportedly contributing around $10 billion, with additional capital from Qatar Investment Authority and Abu Dhabi-based L’imad Holding Co.
- The equity will back an $81 billion acquisition of Warner Bros Discovery (NASDAQ:WBD), which is under regulatory review in Europe and could close as early as July.
Gulf Sovereign Funds Back Paramount Skydance Deal Structure
Paramount Skydance (NASDAQ:PSKY) has arranged approximately $24 billion in equity financing from three sovereign wealth funds in the Gulf region to underpin its proposed $81 billion acquisition of Warner Bros Discovery (NASDAQ:WBD), the Wall Street Journal reported on Sunday, citing people familiar with the matter.
According to the report, Saudi Arabia’s Public Investment Fund is expected to provide about $10 billion of the total equity commitments. The remaining funds are slated to come from the Qatar Investment Authority and Abu Dhabi-based L’imad Holding Co.
Financing Details and Investor Participation
The equity injections are intended to reduce the financial burden on Paramount, which is headed by David Ellison, and its partner RedBird Capital as they advance the media transaction first announced in February. Paramount had earlier indicated that it had secured a comparable overall level of commitments, but the Wall Street Journal report identified the specific sovereign investors involved.
| Investor | Type | Reported Commitment | Role |
|---|---|---|---|
| Public Investment Fund (Saudi Arabia) | Sovereign wealth fund | About $10 billion | Equity backer in Paramount Skydance structure |
| Qatar Investment Authority | Sovereign wealth fund | Not disclosed | Equity backer in Paramount Skydance structure |
| L’imad Holding Co. (Abu Dhabi) | Abu Dhabi-based investor | Not disclosed | Equity backer in Paramount Skydance structure |
Regulatory Review and Transaction Timeline
The planned acquisition includes prominent media assets such as HBO and CNN. The report stated that the transaction is currently being reviewed by regulators in Europe and could be completed as early as July, depending on the outcome of that process.
The Gulf sovereign funds are expected to receive minority, non-voting equity positions in the structure. Paramount does not anticipate that this setup will lead to U.S. national security or communications-related reviews, according to the Wall Street Journal report.
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