Paramount in talks for Gulf backing in Warner takeover: WSJ report
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Paramount clinched the historic Warner Bros studio in February with a US$110 billion offer.
PHOTO: REUTERS
Bengaluru - Paramount Skydance is in talks to secure signed equity commitments of almost US$24 billion (S$31 billion) from three sovereign wealth funds led by Saudi Arabia to help back its takeover of Warner Bros Discovery, the Wall Street Journal reported on April 5.
The US entertainment giant in February said it has agreed to buy its peer in a US$110 billion deal – with an equity value of US$81 billion – that they expect to close in the third quarter.
The merger would combine major studios and networks, such as CNN and CBS, enabling them to compete more aggressively as streaming draws audiences away from traditional linear TV.
To help back the takeover, Saudi Arabia’s Public Investment Fund (PIF) has agreed to provide roughly US$10 billion, the WSJ reported citing people familiar with the matter.
The other backers are likely to include Qatar Investment Authority and Abu Dhabi’s L’imad Holding, the WSJ reported.
PIF, Qatar Investment Authority and L’imad Holding did not respond to Reuters’ e-mailed requests for comment outside of regular business hours. Paramount declined to comment.
The Gulf backers will not have voting rights in the new Paramount-Warner entity, the WSJ reported.
Paramount executives do not expect the funds’ involvement to trigger a review by the Committee on Foreign Investment in the US or Federal Communications Commission, the WSJ said. REUTERS
