Paramount Skydance Secures $24B Gulf Funding for $81B Warner Takeover

Paramount Skydance PSKY +2.92% ▲ has received signed equity commitments for up to $24 billion from three Gulf sovereign wealth funds to support its $81 billion acquisition of Warner Bros. Discovery WBD -0.62% ▼ . The news was first reported by the Wall Street Journal. The David Ellison-led company is working to close the acquisition by July 2026, pending European regulatory review.

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Saudi Arabia’s Public Investment Fund (PIF) will provide roughly $10 billion, while the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. will provide the balance. These investments come amid escalating geopolitical tensions in the Middle East. Each entity will own less than 25% of the combined company and will have no voting rights. Thus, executives do not anticipate any review from the Committee on Foreign Investment in the U.S. (CFIUS) or Federal Communications Commission (FCC).

Here’s What We Know About the Deals

Announced in February 2026, the Paramount merger with WBD aims to create a next-generation media powerhouse valued at over $110 billion including debt. The funds from the Gulf investors will help in covering costs for the Ellisons and Redbird Capital Partners. Paramount has stated that equity syndication will not delay the deal’s closing, as the Ellison family stands ready to cover the full amount if required.

Moreover, Paramount has secured $54 billion in debt commitments from Bank of America BAC +0.22% ▲ , Citigroup C -0.04% ▼ , and private-equity firm Apollo Global Management APO -2.91% ▼ , which it is now syndicating to other banks and investors.

Paramount won the bid to acquire Warner Bros. Discovery after a months-long bidding war with streaming giant Netflix NFLX +3.25% ▲ . The deal has the backing of Ellison’s billionaire father, Larry Ellison, CEO of Oracle ORCL +0.79% ▲ .

Is PSKY Stock a Buy or Sell?

Analysts remain cautious about Paramount Skydance’s long-term prospects amid the ongoing WBD merger process. On TipRanks, PSKY has a Moderate Sell consensus rating based on five Holds and five Sell ratings. The average Paramount Skydance price target of $11.38 implies 19.5% upside potential from current levels. Year-to-date, PSKY shares have dropped 28.6%.

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