Paramount Skydance announced that it has secured equity commitments totaling almost $24 billion from Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and Abu Dhabi’s L’imad Holding Co. These commitments will back the company’s all‑cash $31.00‑per‑share offer that values Warner Bros. Discovery (WBD) at $81 billion in equity and $110 billion in enterprise value when debt is included.
The Gulf investors will hold non‑voting stakes below 25% of the combined entity, a structure designed to avoid triggering U.S. national‑security reviews by the Committee on Foreign Investment in the United States (CFIUS) and to satisfy Federal Communications Commission (FCC) requirements. The equity infusion reduces the equity shortfall that Paramount had to cover and provides a buffer against the $3 billion termination fee that WBD would have owed to a prior Netflix bid.
WBD’s Q4 2025 results showed a 5.7% year‑over‑year decline in revenue and a net loss of $252 million, underscoring the urgency of a transaction that can unlock value for shareholders. The Gulf backing gives Paramount the financial strength to meet regulatory scrutiny, address the termination fee, and accelerate the merger’s completion, which is targeted for the third quarter of 2026, with a hard deadline of September 30 2026 and a ticking fee of $0.25 per share per quarter if the deal does not close by that date.
The U.S. Department of Justice has issued subpoenas as part of its antitrust review, and the European Commission is conducting a parallel investigation. WBD shareholders are scheduled to vote on the merger on April 23, 2026, and the board has unanimously recommended approval. Paramount’s executives have stated that the structure of the Gulf investment should not trigger CFIUS or FCC reviews, easing regulatory concerns.
Analysts have noted that WBD’s stock is trading near $27.30, with a consensus target of $29.55, implying an 8.18% upside. Management comments from WBD’s board chair Samuel A. Di Piazza, Jr. and CEO David Zaslav highlight the board’s focus on maximizing shareholder value and the company’s confidence in the transaction. Paramount’s leadership has expressed confidence that the equity syndication will not delay closing, with the Ellison family ready to cover the full amount if necessary.
The merger will create a media conglomerate that rivals Netflix and Disney, combining a vast content library with expanded streaming reach. Paramount expects more than $6 billion in synergies from technology integration, corporate efficiencies, and procurement savings, positioning the combined company to accelerate its turnaround strategy and deliver enhanced value to shareholders.
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