On Tuesday, David Ellison’s Paramount Skydance confirmed it has secured investment from the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi in its bid to acquire Warner Bros. Discovery.
In a filing with the SEC, Paramount stated that the “successful Equity Syndication” agreement with these Middle Eastern funds, alongside LionTree, represents a significant milestone in the Warner Bros. Discovery transaction process. The company believes that diversifying its shareholder base, along with potential strategic and commercial opportunities with the involved Equity Syndication Parties, and the value of the Warrants mentioned, will enhance long-term shareholder value.
Paramount did not specify what the “strategic and commercial opportunities” with the Saudi, Abu Dhabi, and Qatar funds might entail.
The proposed $111 billion acquisition of Warner Bros. Discovery by Paramount would merge Paramount assets, including CBS News, Paramount Pictures, and Paramount+, with Warner Bros. Discovery’s HBO, HBO Max, Warner Bros. Pictures, CNN, TNT, TBS, HGTV, and others. This deal still requires approval from Warner Bros. Discovery shareholders as well as regulatory clearance.
The SEC’s 8-K filing does not reveal the individual investment amounts from each party in Paramount Skydance. However, Variety has reported that collectively, the three Middle Eastern funds are investing close to $24 billion, with Saudi Arabia’s Public Investment Fund contributing approximately $10 billion.
According to the Paramount 8-K filing, the equity syndication parties consist of affiliates of the Ellison Parties and RedBird, along with major institutional investors: Saudi Arabia’s Public Investment Fund, L’Imad 1st SPV 2 Exempt RSC (an investment vehicle of L’imad Holding, an Abu Dhabi sovereign wealth fund), QIA TMT Holding (an investment vehicle of the Qatar Investment Authority), and LionTree Investment Fund.
Paramount Skydance also stated in Tuesday’s filing that it believes the Warrants will support its long-term objective of achieving a broader and deeper public float.
Paramount Skydance noted that the PSKY shares to be issued to equity syndication investors will be non-voting, and that the Ellison family and RedBird will maintain the largest equity stake in PSKY, continuing to be the sole owners of PSKY Class A Common Stock, which represents 100% of the voting shares of PSKY. The company further explained that the share sale to syndication investors is structured to comply with all relevant U.S. regulatory requirements, including those of the FCC, and will not affect the timing or probability of closing the Warner Bros. Discovery Merger Agreement.
Paramount and Warner Bros. Discovery anticipate the merger will be finalized by the third quarter of 2026. If Paramount’s takeover of Warner Bros. Discovery is not completed by September 30, 2026, Paramount has agreed to pay Warner Bros. Discovery shareholders a 25-cent-per-share “ticking fee” for each quarter (calculated daily) until the closing. This could add roughly $650 million to the deal’s cost on a quarterly basis.
The Ellisons and RedBird are offering a private placement investment in Paramount Skydance’s Class B Common Stock at a price of $16.02 per share.
