Paramount Skydance Reportedly Forms Consortium With Middle East Sovereign Wealth Funds For $71 Billion Warner Bros Discovery Bid

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According to a report by Variety, Paramount Skydance has formed a consortium with PIF, QIA, and ADIA to support its bid.

  • According to Variety’s report, the bid is largely supported by the Ellison family, which holds 100% voting control of Paramount Skydance.
  • Paramount Skydance’s stock rose 3% in afternoon trade, while Warner Bros. Discovery shares jumped nearly 5% despite weakness in the broader market.
  • The Warner Bros. Discovery board has set November 20 as the deadline for initial bids from interested buyers, which also reportedly include Comcast and Netflix. 

Paramount Skydance (PSKY) is reportedly roping in new investment from Middle Eastern sovereign wealth funds to submit a $71 billion bid for Warner Bros. Discovery (WBD).

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According to a report by Variety, Paramount Skydance has formed an investment consortium including Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority (QIA), and the Abu Dhabi Investment Authority (ADIA). It said the bid is largely supported by the Ellison family, which holds 100% voting control of Paramount Skydance, alongside backing from Gerry Cardinale’s RedBird Capital.

PSKY’s stock rose more than 3% despite weakness in the broader market and was among the top trending tickers on Stocktwits in afternoon trade. Retail sentiment around the company, however, fell to ‘neutral’ from ‘bullish’ territory over the past day, as chatter reduced to ‘normal’ from ‘high’ levels.

WBD’s stock was also in the top trending on Stocktwits. The shares rose nearly 5% in afternoon trade, with retail sentiment rising to ‘extremely bullish’ from ‘bullish’ territory over the past day as chatter rose to ‘high’ from ‘normal’ levels.

Bidding Deadline Approaches

The Warner Bros. Discovery board has set November 20 as the deadline for initial bids from interested buyers, which include Comcast and Netflix. Comcast’s CEO Brian Roberts reportedly traveled to Saudi Arabia to explore a partnership with PIF for the bid. Amazon (AMZN) and Apple (AAPL) are also rumored to be considering either a full acquisition or selective asset purchases.

A successful transaction would consolidate several iconic brands under new ownership, including Warner Bros., HBO, CNN, Discovery, and DC Entertainment. However, WBD carries a heavy debt load exceeding $35 billion, complicating valuation and deal structuring.

Concerns Over Saudi Arabia’s Involvement

Regulatory scrutiny is expected to be intense, particularly in the U.S. and Europe, due in part to PIF’s involvement. Concerns over national security, foreign ownership, and editorial independence could also influence approvals, the report stated.

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