TLDR
- Paramount Skydance has secured nearly $24 billion in equity commitments from three Gulf sovereign wealth funds to back its Warner Bros. Discovery acquisition.
- Saudi Arabia’s PIF is contributing roughly $10 billion, with Qatar Investment Authority and Abu Dhabi’s L’imad Holding covering the rest.
- Each Gulf investor will own less than 25% of the combined entity and will have no voting rights.
- Paramount executives do not expect CFIUS or FCC review to be triggered by the Gulf involvement.
- The deal, valued at over $110 billion including debt, is expected to close by July 2026, pending European regulatory approval.
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Paramount Skydance (PSKY) has locked in nearly $24 billion in equity commitments from three Gulf sovereign wealth funds to help finance its $81 billion takeover of Warner Bros. Discovery (WBD), according to a Wall Street Journal report published Sunday.
Paramount Skydance Corporation Class B Common Stock, PSKY
The lead backer is Saudi Arabia’s Public Investment Fund, which has agreed to contribute roughly $10 billion. Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. are expected to provide the remainder.
The deal was first announced in February 2026 and would create a media company valued at more than $110 billion including debt. The combined entity would bring together major studios and networks including CNN and CBS under one roof.
David Ellison’s Paramount won the right to acquire Warner after a competitive bidding process that included streaming giant Netflix. The deal carries the backing of Larry Ellison, David’s father and CEO of Oracle.
None of the three Gulf funds will hold voting rights in the new combined company. Each will own less than 25% of the entity.
No Regulatory Tripwire Expected
Paramount executives do not expect the Gulf investments to trigger a review from the Committee on Foreign Investment in the U.S. (CFIUS) or the Federal Communications Commission (FCC).
That’s partly because of the non-voting, sub-25% ownership structure — a setup designed to keep the deal clean from a regulatory standpoint. PIF, Qatar Investment Authority, and L’imad Holding did not respond to requests for comment.
Alongside the Gulf commitments, Paramount has secured $54 billion in debt financing from Bank of America, Citigroup, and Apollo Global Management, which it is now syndicating to other banks and investors.
Ellison Family as Backstop
The Ellison family has made clear they are prepared to cover the full equity amount if the Gulf funding falls through, meaning the syndication process will not hold up the deal’s timeline.
Paramount has stated that equity syndication will not delay closing, which is targeted for July 2026, subject to European regulatory sign-off.
On the analyst side, sentiment on PSKY remains cautious. The stock carries a Moderate Sell consensus on TipRanks, based on five Hold and five Sell ratings. The average price target sits at $11.38, implying about 19.5% upside from current levels.
Year-to-date, PSKY has fallen 28.6% heading into this week’s news.
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