Paramount Skydance is in discussions to secure nearly $24 billion in equity commitments from three sovereign wealth funds, led by Public Investment Fund, to support its planned acquisition of Warner Bros Discovery, according to a report by The Wall Street Journal.
The U.S. media company said in February it had agreed to acquire its rival in a deal valued at $110 billion, including an equity value of $81 billion, with completion targeted for the third quarter.
The proposed merger would bring together major assets such as CNN and CBS, strengthening their ability to compete as streaming continues to draw audiences away from traditional TV.
As part of the financing, the Public Investment Fund is expected to contribute about $10 billion, the report said. Other potential investors include Qatar Investment Authority and L’imad Holding.
None of the funds responded to requests for comment, while Paramount declined to comment on the matter.
The Gulf investors are not expected to receive voting rights in the combined Paramount-Warner entity. Company executives also believe their involvement is unlikely to trigger reviews by the Committee on Foreign Investment in the United States or the Federal Communications Commission, according to the report.
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