Questions remain about the source of funding behind Paramount Global’s planned acquisition of Warner Bros. Discovery, particularly whether financial backing from Middle Eastern countries will be involved.
Paramount recently secured the rights to acquire Warner Bros. Discovery after Netflix withdrew from the bidding process. However, the company has not confirmed whether investment funds from Gulf nations will be used to support the deal.
In government filings and during an investor call on Monday, Paramount said that Larry Ellison and David Ellison, along with private equity firm RedBird Capital Partners, have committed $47 billion toward the estimated $81 billion transaction needed to buy out Warner Bros. Discovery shareholders. The remaining amount is expected to be financed through debt.
The company has not clarified how much of the $47 billion will come directly from the Ellisons and RedBird and how much could be raised from additional investors. A company representative pointed to the merger agreement, which allows portions of the equity commitment to be sold to other investors, but the agreement does not identify who those investors might be.
Earlier reports indicated that Paramount had planned to raise $24 billion through state-backed investment funds from three Middle Eastern countries. According to those plans, Saudi Arabia would contribute $12 billion, while Abu Dhabi and Qatar would each provide $7 billion.
Paramount had previously stated that these countries would not request board seats or voting rights despite their equity participation.
Because the company has not confirmed the final investor structure, it remains possible that these Gulf state funds could still be part of the financing package. Representatives from the potential investors have been contacted for comment.
The possible involvement of foreign state-backed funds in a major American media company could attract attention from policymakers and regulators. Warner Bros. Discovery had earlier raised concerns about potential regulatory complications linked to foreign investment.
Despite these concerns, foreign investment from Gulf countries has become increasingly common in major American businesses. For example, Saudi-backed investors are expected to become the primary owners of Electronic Arts once a deal closes later this year. Meanwhile, Abu Dhabi’s MGX investment fund holds a 15% stake in the US operations of TikTok.
Political developments may also play a role. Donald Trump has strengthened business ties with the Middle East during his second term, hosting business events with American CEOs in Saudi Arabia and welcoming Mohammed bin Salman at the White House.
For now, Paramount has not confirmed whether Middle Eastern funding will be included in the acquisition.
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