Warner Bros. Discovery (WBD) shareholders have given overwhelming approval for a proposed $110 billion merger with Paramount, a deal heavily backed by a consortium of three major Gulf sovereign wealth funds. The transaction now moves to face regulatory checks in the United States.
Quick Facts
- Proposed merger valued at $110 billion.
- $24 billion in equity from Gulf funds.
- Deal expected to close in Q3.
Gulf Capital Fuels Hollywood’s Next Mega-Merger
The deal, which puts an end to a months-long bidding war with Netflix for the iconic studio, is powered by significant capital from the MENA region. Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi-based L’imad Holding, and the Qatar Investment Authority (QIA) have jointly backed Paramount’s hostile takeover with $24 billion in equity.
PIF is reportedly contributing $10 billion of that total. To simplify the government approval process, the three Gulf funds have opted out of voting rights.
The merger is set at a price of $31 per share. David Zaslav, WBD’s president and CEO, said the deal will create “a leading, next-generation media and entertainment company.”
Other key investors in the deal include US firm Redbird Capital Partners and the family of Larry Ellison, co-founder of Oracle.
Navigating Regulatory Headwinds
Despite the shareholder vote, the merger is not yet finalized. It must first pass regulatory checks, a process that is already attracting political attention.
Democratic Senator Elizabeth Warren issued a warning following the vote, posting on X that the merger “isn’t a done deal.”
“State attorneys general across the country are stepping up to stop this antitrust disaster,” she stated. “We need to keep up this fight.”
During the bidding process, Paramount had suggested that its owners’ connections to the Trump administration could help ease the path to regulatory clearance.
The Road to Approval
The shareholder approval marks a key milestone after WBD’s board had previously rejected earlier versions of Paramount’s hostile bid. In February, the board recognized an improved offer as “superior” and recommended it to shareholders for a vote.
Both Warner Bros. Discovery and Paramount have stated they expect the transaction to be finalized in the third quarter of this year.
About Warner Bros. Discovery
Warner Bros. Discovery is a global media and entertainment company with a vast portfolio of iconic brands and content. Its assets include the Harry Potter film franchise, the DC Universe, and globally recognized series like Friends and Game of Thrones. The company also owns the streaming service HBO and the global news network CNN.
Source: AGBI
