They may have had Iranian missiles falling on their heads for the past month, but one thing the Gulf states are not short of is cash. Anyone who has been to Dubai, Abu Dhabi, or Riyadh will tell you that. Even with air raid warnings going off and things exploding. So, of course, Paramount would be looking there for funding for the Warner Bros. Discovery deal.
Paramount Skydance is pushing for a deal to secure nearly $24 billion in funding from three Middle Eastern sovereign wealth funds to back the company’s takeover of Warner Bros. Discovery, according to The Wall Street Journal.
First up is Saudi Arabia’s Public Investment Fund that has agreed to provide around $10 billion, with Qatar and Abu Dhabi providing the remainder of the $24 billion, as long as they don’t have to divert funds to filling in pesky craters or restocking interceptor missiles at $2.4 million a shot.
SEC filings by Paramount Skydance also state, interestingly, that the Middle Eastern sovereign wealth funds have waived governance rights such as board representation and will be non-voting equity investors.
Smart move from a US governance point of view, as this means they can dodge complications like a Treasury Department overview of foreign investments in American businesses for potential national security risks and conflicts of interest.
Several U.S. senators have started to make disgruntled noises against this, and want the FCC involved. Which is a bit of a liberty after the last month. If they still want to invest $24 billion into your economy after getting them into a shooting war, you should probably take it.
The total deal is $110 billion including the debt, so there will still be regulatory hurdles to clear in both the US and Europe.
The board meeting to vote on this deal at Warner Bros. Discovery is set for April 23rd.
