There might be a war in the Middle East that threatens to wreak havoc on the global economy, but sovereign wealth funds controlled by Saudi Arabia, Qatar and Abu Dhabi are willing to bet on an American media company.
Paramount, led by David Ellison, is closing in on a deal with Saudi Arabia’s Public Investment Fund, Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. to provide $24 billion in equity backing for his $111 billion takeover of Warner Bros. Discovery, according to The Wall Street Journal. $10 billion of that $24 billion will come from the PIF.
The capital will help offset the costs for the Oracle founder Larry Ellison and RedBird Capital Partners, which have agreed to backstop David Ellison’s deal. The foreign investors are not expected to hold any governance or board seats.
Paramount disclosed the foreign backers when it launched its hostile bid
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