In a landmark move signalling the growing influence of Gulf capital in global media, three of the region’s largest sovereign wealth funds have joined forces to back a $108 billion hostile takeover bid for Warner Bros Discovery. Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi’s L’imad Holding Company, and the Qatar Investment Authority (QIA) have officially agreed to support the acquisition attempt led by Paramount Skydance.
The bid is also supported by Affinity Partners, the private equity firm founded by Jared Kushner, which counts funds from the UAE and Qatar among its investors. This collaboration marks a significant strategic push by the oil-dependent nations to acquire premier global entertainment assets and content libraries.
A Rare Gulf Alliance
The joint backing of a single, hostile takeover bid is a highly unusual strategy for the Gulf’s sovereign funds, which have historically invested alongside each other in companies but have rarely teamed up for a unified acquisition attempt. This united front underscores the scale of the ambition to secure a substantial stake in some of Hollywood’s most iconic properties.
“A joint three-way alliance is very unusual, but it allows the three countries to step outside their regional media empires and brings them straight into the media big league,” said Neil Quilliam, a partner at Azure Strategy.
The sheer size of the deal is considered a key driver for the multi-fund approach. Notably, the participation of Gulf sovereign wealth funds in hostile bids is also a rare occurrence, indicating a more aggressive and confident investment posture on the global stage.
Strategic Push into Global Media
This investment aligns perfectly with the Gulf states’ long-term economic diversification goals and their aspirations to become major players in the entertainment and media sectors. For years, these nations have been courting filmmakers, opening theme parks, and building out local production capabilities.
“This is a strategic and high-priority investment space for Gulf sovereign and other investors,” noted Robert Mogielnicki, a political economist specializing in the Middle East. The acquisition would provide direct ownership of globally recognized content and access to new international audiences.
The move also fits with the region’s broader goals to expand its soft power and influence. “It also fits with their joint aspirations to become global influencers and to shape new media narratives,” Quilliam added. This investment follows other major media plays in the region, including PIF’s acquisition of a majority stake in Saudi media giant MBC Group, which operates the popular streaming platform Shahid.
Bypassing Regulatory Hurdles
According to a filing by Paramount, the structure of the investment is designed to avoid a review by the US Committee on Foreign Investment (CFIUS). The Gulf investors will not have governance rights, such as board seats or voting rights, which typically trigger such regulatory scrutiny. This strategic structuring allows for a smoother potential path to completing the high-stakes transaction.
About The Public Investment Fund
The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia and one of the largest in the world. As a key driver of the Kingdom’s Vision 2030, PIF is actively diversifying the Saudi economy by making significant, long-term investments both domestically and internationally across a wide range of sectors, including technology, entertainment, and renewable energy.
Source: Gulf Business
