Gulf SWFs commit $24bn for Paramount-Warner deal

• PIF, QIA and L’imad in talks
• Funds will own less than 25%
• Deal may close in July

Three GCC sovereign wealth funds (SWFs) are reportedly in discussions with US media conglomerate Paramount Skydance to provide nearly $24 billion in equity commitments for its takeover of Warner Bros Discovery.

In February, Paramount Skydance agreed to buy Warner Bros, the Hollywood studio behind the Harry Potter films, the DC Universe, Friends and Game of Thrones, in a $110 billion deal that is expected to close in the third quarter.

Saudi Arabia’s Public Investment Fund has agreed to provide almost $10 billion to Paramount, the Wall Street Journal (WSJ) reported, quoting unidentified sources.

Qatar Investment Authority and Abu Dhabi’s L’imad Holding will back the deal, with agreements expected to be signed as early as Monday, the report said, without specifying their respective contributions.

The SWFs will have no voting rights in the new Paramount-Warner entity, the report said. The deal is unlikely to trigger a mandatory review by the Committee on Foreign Investment in the US, as the three wealth funds will own less than 25 percent of the combined company.

The Paramount-Warner deal is subject to regulatory review in Europe, but may close as early as the end of July, the WSJ reported.

Paramount has already received $54 billion in debt commitments from Bank of America, Citigroup and Apollo Global Management, a US-based asset manager.

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