Paramount in talks for Gulf backing in Warner takeover: WSJ
The Gulf backers will not have voting rights in the new Paramount-Warner entity
Add BT as a preferred source
[NEW YORK] Paramount Skydance is in talks to secure signed equity commitments of almost US$24 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 Sunday (Apr 5).
The US entertainment giant in February said that 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 sources. 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’ emailed 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.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
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 Journal said. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
