Search Here

Paramount Skydance has secured nearly $24 billion in funding from major Middle Eastern wealth funds to support its planned acquisition of Warner Bros. Discovery, as the massive deal faces ongoing regulatory review.

According to reports, Saudi Arabia's Public Investment Fund has committed about $10 billion, while funds from Qatar and Abu Dhabi will provide the remaining investment.

The financial backing is expected to help offset the cost of the $81 billion deal led by CEO David Ellison and supported by his father, Larry Ellison, NY Post reported.

The agreement comes as Paramount pushes forward with one of the biggest media mergers in recent years.

The combined company would include major brands such as HBO, CNN, CBS, and well-known film franchises.

Executives have told employees they are aiming to close the deal by the end of July, pending approvals.

The investment structure may help ease regulatory concerns. The Gulf funds will receive non-voting shares and will not have board representation.

Media analyst Derek Reisfield said this setup "eliminates some of the regulatory scrutiny," since the investors will not control company decisions.

Paramount Skydance Deal Faces US and EU Review

Still, the deal is under close review in both the United States and Europe. In the US, regulators like the Committee on Foreign Investment in the United States and the Federal Communications Commission are expected to examine the transaction.

Because each foreign investor will hold less than 25% ownership, experts believe an FCC review is less likely. The deal has also drawn political attention.

According to Variety, officials have warned it will not receive special treatment. Omeed Assefi, acting head of the Justice Department's antitrust division, said the merger will "absolutely not" be fast-tracked due to political ties.

Paramount's bid won out after a competitive process earlier this year, beating out Netflix.

To secure the deal, Paramount agreed to cover a $2.8 billion termination fee and offer additional payments to shareholders if the closing is delayed.

The Ellison family has played a key role in financing the acquisition. Larry Ellison had already pledged to fund the deal if needed, but the new commitments reduce the amount he must contribute.

A shareholder vote for Warner Bros. Discovery is scheduled for April 23.