{"id":273235,"date":"2025-11-20T08:59:09","date_gmt":"2025-11-20T08:59:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/273235\/"},"modified":"2025-11-20T08:59:09","modified_gmt":"2025-11-20T08:59:09","slug":"paramount-in-talks-with-arab-funds-on-warner-bros-discovery-bid","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/273235\/","title":{"rendered":"Paramount in Talks With Arab Funds on Warner Bros. Discovery Bid"},"content":{"rendered":"

Paramount is in advanced discussions with Saudi, Qatari and United Arab Emirate sovereign wealth funds about investing in its bid for Warner Bros. Discovery, despite Paramount\u2019s official denials, TheWrap has learned. <\/p>\n

The strategy is aimed at strengthening support for the Ellisons\u2019 bid from the Trump administration, which has been courting Saudi interests and other Gulf investments in the United States, as well as blocking Comcast CEO Brian Roberts from cutting his own deal with the Saudis.<\/p>\n

Paramount made the unusual move on Tuesday of denying a report that a deal had been struck with the three sovereign wealth funds. But two individuals confirmed to TheWrap that advanced discussions are ongoing with Saudi Arabia\u2019s Public Investment Fund (PIF), the Qatar Investment Authority (QIA) and the Abu Dhabi Investment Authority (ADIA).<\/p>\n

A flurry of activity has accompanied a raft of rumors around bids for Warner Bros. Discovery, one of Hollywood\u2019s legendary studios. <\/p>\n

Paramount CEO David Ellison and RedBird Capital Partners founder Gerry Cardinale, a major backer in the media company, both traveled to Abu Dhabi, according to a source familiar with the situation. On Tuesday, Ellison attended President Donald Trump\u2019s state dinner<\/a> for Saudi Crown Prince Mohammed bin Salman.<\/p>\n

Meanwhile, Comcast\u2019s Roberts was also in the Arabian Gulf in recent weeks, attending an investor conference and visiting Qiddiya City, a new entertainment hub near Riyadh designed to be a world-class destination with multiple theme parks. <\/p>\n

The talks come ahead of WBD\u2019s Thursday deadline for first-round bids<\/a>, with Paramount, Comcast<\/a>\u00a0and Netflix<\/a> the three main interested suitors. For Paramount, getting the three Arab funds on board is less about financial backing and more about building the most compelling case to get a deal done.<\/p>\n

\"\"<\/a><\/p>\n

The move could potentially diminish a rival bidder\u2019s chances by preventing Comcast from striking a similar deal. A Comcast source said the cable giant had no plans to fund its bid with Saudi Arabian investment and said Roberts was in the kingdom for the conference.<\/p>\n

But the possibility of that deal was clearly enough to motivate Paramount.<\/p>\n

Ellison needs to ally with these funds \u201cto keep them from investing with Brian Roberts,\u201d the first knowledgable person said. \u201cIf you\u2019re David Ellison, you don\u2019t have a choice.\u201d<\/p>\n

An alliance also provides political benefits. As evidenced by the warm welcome that bin Salman received at the White House, including Trump defending the crown prince<\/a> from a question about his involvement with the murder of journalist Jamal Khashoggi, having Saudi Arabia\u2019s PIF involved in the bid could further speed the regulatory approval process with the Trump administration.<\/p>\n

\"DonaldPresident Donald Trump meets with Saudi Crown Prince Mohammed bin Salman on Tuesday. (Win McNamee\/Getty Images)<\/p>\n

WBD has said it hopes to provide an update on its strategic review by the middle or end of December.<\/p>\n

Representatives for PIF, QIA and ADIA did not return TheWrap\u2019s request for comment. A spokesperson for Paramount declined to comment. <\/p>\n

Increasing Saudi influence in Hollywood<\/p>\n

Middle Eastern countries, and Saudi Arabia in particular, have increasingly poured money into getting a toehold in Hollywood and entertainment in general. Last month saw the launch of Arena SNK Studios<\/a>, a new billion dollar-funded studio backed by bin Salman.<\/p>\n

This came after Saudi Arabia invested in the creation of LIV Golf, took a\u00a0major stake in Electronic Arts<\/a> and the\u00a0Grand Prix Formula 1 event and struck a brand new\u00a0deal with TKO<\/a>\u00a0to promote Zuffa Boxing. And in September, a host of A-list comics like Dave Chappelle and Bill Burr participated in the Riyadh Comedy Festival in exchange for big paychecks \u2014 a move that received considerable backlash<\/a> in the U.S.<\/p>\n

It\u2019s also not just entertainment, as bin Salman on Wednesday announced a broader investment in U.S. AI companies, including with AI startup Humain participating in a $900 million funding round for video model company Luma AI<\/a>.<\/p>\n

But participation by the three Arab sovereign wealth funds raises questions about how much influence they would have in U.S. media and mass entertainment. Middle Eastern countries have for the last decade spent lavishly to improve their image and reputation on the world stage.<\/p>\n

But Saudi Arabia has been criticized for its oppressive regime with little tolerance for dissenting voices, as evidenced by the murder of Khashoggi, which Trump dismissed Tuesday as \u201cthings happen.\u201d<\/a> Does having PIF as an investor in a bid mean CNN may be discouraged from critical coverage of the country or its ruler?<\/p>\n

It\u2019s a question that some in Hollywood are already wrestling with as the prospect of an Arab-backed bid gets closer to reality. <\/p>\n

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\n\t\t\t\t\t\t\t\"Darrell\t\t\t\t\t<\/a><\/p>\n

Paramount\u2019s push<\/p>\n

The strategic maneuvering to ally with the funds underscores Ellison\u2019s drive to get a deal with WBD done as he works to build a next-generation media giant. <\/p>\n

Ellison, who had previously submitted three bids as high as $23.50 a share, has argued the company would be the \u201cbest partner\u201d for Warner after CEO David Zaslav signaled his interest to sell the company just three years after merging Warner Bros. and Discovery, adding that other potential acquirers would need to overcome \u201csignificant (perhaps insurmountable) hurdles given their dominant market positions.\u201d<\/p>\n

In order to sweeten the bid, Ellison previously\u00a0offered Zaslav a co-CEO and co-chairman title<\/a> and said the company would increase the portion of its bid paid in cash to shareholders from 60% to 80% and breakup fee from $2 billion to $2.1 billion.<\/p>\n

If successful in acquiring WBD,\u00a0TheWrap previously reported<\/a>\u00a0that Ellison would look to merge HBO Max and Paramount+ into a \u201csuper platform\u201d under one scenario being considered. The\u00a0theatrical model is also at the core of his vision<\/a>\u00a0and a combined company would look to target an output of 30 films per year as part of its commitment to that model.<\/p>\n

Lucas Manfredi contributed to this story.<\/p>\n

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