Paramount-Warner Bros. Will Be 38.5% Owned by Middle Eastern Funds: Filing

Key Points:

• The merged Paramount-Warner Bros. Discovery (WBD) will be 49.5% owned by foreign investors, with 38.5% held by three Middle Eastern sovereign wealth funds: Saudi Arabia’s Public Investment Fund (15.1%), the UAE’s sovereign wealth fund (12.8%), and the Qatar Investment Authority (10.6%).
• Despite significant foreign equity stakes, these investors will not have board seats or voting shares; control remains with the Ellison family and RedBird Capital Partners, who hold 100% of the voting power.
• Paramount has filed with the FCC seeking approval to allow foreign investors to hold equity and voting interests exceeding statutory limits, including advance approval for potential increases up to 20% equity and voting interests.
• The foreign investment is part of a $24 billion equity syndication supporting the $111 billion Paramount acquisition of Warner Bros. Discovery, which has shareholder approval but still awaits European regulatory clearance and may face legal challenges.
• Paramount emphasized that the FCC’s approval of foreign ownership is not a condition for closing the deal, and the company views the merger as enhancing competition and benefiting creative talent and consumers.