Paramount secures $24B from Gulf wealth funds as Warner Bros. deal seeks regulatory approval: report

David Ellison-run Paramount Skydance has reportedly signed deals to get nearly $24 billion from three Gulf wealth funds to help back its acquisition of Warner Bros.Discovery.Saudi Arabia’s Public Investment Fund has agreed to provide roughly $10 billion for the mega media merger, while the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co.

have also signed equity commitments with Paramount, the Wall Street Journal reported, citing unnamed sources with knowledge of the matter.The commitments will help offset the costs of the $81 billion deal for Paramount CEO Ellison and his father Larry Ellison, the mega-billionaire co-founder of Oracle and a close ally of President Trump’s.The elder Ellison previously promised to back the deal even if Paramount couldn’t secure outside support.Gerry Cardinale’s private equity firm RedBird Capital is also backing the deal.The Gulf funds’ commitment comes as tensions remain high in the Middle East due to the US and Israel’s war with Iran, as Iranian strikes have broadened to neighboring regions – including attacks on key energy facilities in Qatar and Saudi Arabia, which could further disrupt global energy markets.Meanwhile, Paramount’s deal for WBD – which would create a media behemoth including HBO, CNN, CBS, “Harry Potter” and “The Godfather” – is awaiting regulatory review in Europe, where it is likely to face more challenges than in the US, according to experts.Executives at Paramount, though, have told employees to prepare to close the deal as soon as the end of July, according to the Wall Street Journal.Paramount declined to comment.After a brutal monthslong bidding war with Netflix, Paramount in February emerged victorious in the battle to acquire WBD – in part arguing that its deal would be able to secure regulatory approval because the Ellison family could cover the entire cost if necessary.The Saudi funds’ involvement “potentially complicates things a bit,” Derek Reisfie...