Arab Wealth Funds Support Paramount Skydance’s Latest WBD Acquisition Bid
The competition for Warner Bros. Discovery (WBD) is intensifying, with multiple bids now on the table. Paramount Skydance, Netflix, and Comcast have submitted offers, aiming to acquire parts or all of the media giant. Paramount Skydance’s proposal is noteworthy as it is partially backed by significant Arab wealth funds.
Key Bids and Financial Backing
On December 1, Paramount Skydance presented a higher all-cash offer aimed at acquiring the entirety of WBD. This bid receives backing from major Arab sovereign wealth funds including:
- Public Investment Fund of Saudi Arabia (PIF)
- Qatar Investment Authority (QIA)
- Abu Dhabi Investment Authority (ADIA)
Additionally, the Ellison family, specifically Oracle co-founder Larry Ellison, along with RedBird Capital and Apollo Global Management, are essential financial supporters of this proposal.
Comparing Offers from Other Bidders
While Paramount Skydance pursues a full acquisition, Netflix and Comcast have shown interest primarily in WBD’s studio and streaming segments, excluding linear TV assets. Reports suggest that Netflix’s offer is predominantly in cash. Unlike its historical stance against theatrical releases, Netflix has committed to honoring existing distribution deals if its bid succeeds.
CFIUS Review and Considerations
A critical consideration in these negotiations is the involvement of foreign investment. Sources indicate that the level of participation from the three wealth funds does not trigger a review by the Committee on Foreign Investment in the United States (CFIUS), which evaluates foreign investments for national security risks.
Future Steps for WBD
WBD is currently assessing all bids, with plans to conclude this process by the end of 2025. This review began last month when the company acknowledged receiving various acquisition interests. WBD’s board may decide to enter exclusive negotiations with one of the bidders or potentially seek further proposals.
Paramount Skydance’s Previous Bids
Previously, David Ellison of Paramount Skydance had made three bids for WBD, the highest being $23.50 per share, composed of 80% cash and 20% stock. Despite the competitive offers, the board of WBD rejected these, opting instead for a strategy that involves splitting the company into two separate entities by April 2026.
As this acquisition landscape evolves, it remains to be seen whether the latest bids will reshape the future of Warner Bros. Discovery significantly. The board’s decision will play a crucial role in determining the path forward for the media conglomerate.
