A massive media industry shake-up is moving closer to reality after Paramount Skydance secured nearly $24 billion in fresh funding from major Middle Eastern investors to finance its planned takeover of Warner Bros. Discovery.
The funding package, backed by sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, signals strong international confidence in the deal. According to reports, Saudi Arabia’s Public Investment Fund alone is contributing around $10 billion, with the remaining amount split between Qatari and Abu Dhabi state-backed funds.
The acquisition, led by David Ellison, targets a company valued at roughly $111 billion. If approved, it would rank among the largest entertainment mergers in recent history. Paramount Skydance and Warner Bros. Discovery expect the deal to close by the end of the third quarter of 2026, pending regulatory clearance.
Despite the scale of foreign investment, Paramount has structured the deal to limit outside influence. Earlier filings reveal that the Middle Eastern investors “have agreed to forgo any governance rights, including board representation associated with their non-voting equity investments.” This arrangement is designed to sidestep scrutiny from the Committee on Foreign Investment in the United States, commonly known as CFIUS.
Still, political pressure is building. Two weeks ago, a group of seven Democratic senators urged the Federal Communications Commission to conduct a “thorough review” of the deal’s foreign backing. Concerns center on national security and the growing role of overseas capital in major U.S. media companies.
Earlier criticism also came from Elizabeth Warren and Richard Blumenthal, who faulted the Trump administration’s Treasury Department for not launching a formal CFIUS review.
Paramount executives, however, appear confident that regulatory hurdles can be cleared. Reports suggest each sovereign fund will hold significantly less than a 25% stake, a threshold often associated with deeper regulatory examination.
The deal has already seen some twists. Chinese tech giant Tencent initially withdrew from the financing group due to concerns raised by Warner Bros. Discovery’s board over foreign ownership. However, it has since returned with renewed financial backing, according to recent reports.
Warner Bros. Discovery’s board accepted Paramount’s $31-per-share offer earlier this year after Netflix chose not to submit a competing bid. Since then, Paramount has remained largely quiet about the exact breakdown of contributions from its financial partners.
With billions now secured and investor backing firming up, attention shifts to regulators. Their decision will determine whether this high-stakes merger reshapes the global entertainment landscape, or stalls under political and national security concerns.
