Paramount Global is in advanced negotiations to secure roughly $24 billion in equity financing from Gulf sovereign wealth funds to support its proposed $110 billion acquisition of Warner Bros. Discovery, according to reports.
The financing effort is expected to be anchored by Saudi Arabia’s Public Investment Fund, which could contribute about $10 billion. Additional backing may come from the Qatar Investment Authority and Abu Dhabi-based L’imad Holding, reflecting growing Middle Eastern appetite for global media assets.
The transaction, first announced in February by Paramount Skydance, values Warner Bros. Discovery at approximately $110 billion, including an equity valuation of $81 billion. If completed, it would rank among the largest media mergers globally, reshaping the competitive dynamics of the streaming industry.
Paramount is expected to close the deal in the third quarter of 2026, subject to regulatory approvals and final financing arrangements. The involvement of sovereign wealth funds is structured to provide long-term capital while limiting governance influence. Sources indicate these investors are unlikely to receive voting rights in the merged entity—an approach designed to mitigate regulatory concerns in the United States.
Despite the scale of the deal, Paramount executives reportedly do not expect the funding structure to trigger scrutiny from the Committee on Foreign Investment in the United States or the Federal Communications Commission, though oversight remains a key risk factor.
Potential Takeover
The takeover push is part of Paramount’s broader strategy to scale up amid intensifying competition in global streaming. The company has faced pressure from rivals such as Disney and Universal, particularly in box office performance, and is seeking consolidation to strengthen its market position.
Earlier developments also point to diversified funding interest. In March 2026, Tencent Holdings was reported to be considering a passive investment in the deal, potentially contributing several hundred million dollars without taking an active management role.
Paramount’s access to deep-pocketed backing, including support from Larry Ellison, has been central to its ability to pursue such a large-scale acquisition despite broader market constraints.
