Paramount Skydance Secures $24B Equity for Warner Acquisition

Paramount Skydance, led by David Ellison, has secured commitments of nearly $24 billion in equity financing from three Middle Eastern sovereign wealth funds to support its proposed acquisition of Warner Bros. Discovery. The deal, valued at $81 billion in equity and approximately $111 billion including debt, aims to merge two major Hollywood studios and reshape the entertainment industry. The transaction was accepted by Warner Bros. Discovery's board in February and is expected to close by the end of the third quarter of 2026, pending regulatory approvals.

Saudi Arabia's Public Investment Fund has pledged about $10 billion, with the Qatar Investment Authority and Abu Dhabi's Limad Holding Company providing the remainder. The funds will receive non-voting equity stakes, each below 25 percent of the combined company, and have agreed to forgo governance rights such as board representation. Paramount executives anticipate this structure will avoid reviews by the Committee on Foreign Investment in the United States or the Federal Communications Commission, as it does not grant the investors control over operations.

The financing reduces the equity burden on Larry Ellison, David...