Paramount Skydance filed formal disclosures with the Federal Communications Commission on Tuesday confirming $24 billion in equity commitments from three Middle Eastern sovereign wealth funds to underwrite its $110 billion acquisition of Warner Bros. Discovery. The funds—originating from Saudi Arabia, Qatar, and Abu Dhabi—now hold roughly 22 percent of the transaction's equity layer, marking the largest Gulf sovereign participation in a U.S. media consolidation since the $85 billion AT&T-Time Warner combination in 2018. David Ellison's Skydance submitted the filing as part of regulatory review ahead of an expected Q2 2025 close.
The structure places sovereign capital directly into the combined entity's holding structure rather than through convertible debt or preferred shares. Paramount disclosed that the Saudi Public Investment Fund committed approximately $11 billion, Qatar Investment Authority pledged $8 billion, and Mubadala Investment Company allocated $5 billion. The filing did not specify board representation or content governance clauses, though industry counsel noted that FCC foreign ownership rules permit up to 25 percent aggregate foreign equity in broadcast licensees without prior approval. The transaction values Warner Bros. Discovery at roughly $68 billion enterprise value after $42 billion in assumed debt, implying a 1.3x forward revenue multiple on the combined pro forma base of $52 billion in trailing twelve-month revenue.
The move consolidates 47 percent of U.S. cable network advertising inventory under one roof and unifies HBO Max, Discovery+, and Paramount+ into a single streaming platform with a projected 310 million global subscribers by year-end 2026. The combined library spans 200,000 hours of owned content, including Warner's DC Comics catalog, CNN, and Turner Sports, alongside Paramount's CBS broadcast network and Nickelodeon franchises. The deal also transfers control of 31 U.S. broadcast stations and international licensing rights across 180 countries. Gulf allocators have increased U.S. media exposure 340 percent since 2020, moving from minority stakes in venture-backed content studios to majority equity positions in public entertainment conglomerates. Saudi PIF alone deployed $38 billion into U.S. media, gaming, and sports assets between 2021 and 2024, including $6 billion into Electronic Arts and $4 billion into Live Nation.
Operators should monitor FCC Commissioner statements in the next 30 days for any foreign ownership review triggers, particularly around CNN's broadcast license renewal scheduled for December 2025. Allocators tracking luxury hospitality adjacencies should note that the combined entity controls 18 percent of global hotel in-room entertainment systems and licensing agreements with 340 luxury hotel groups, including Four Seasons, Mandarin Oriental, and Rosewood. The merged company's advertising sales unit will hold rate-card authority over $14 billion in annual luxury goods, automotive, and spirits spend, comparable to Comcast NBCUniversal's $15 billion upfront commitment base. Warner Bros. Discovery's shares closed Tuesday at $48.20, up 6.8 percent on volume 220 percent above the 30-day average.
The transaction timing aligns with Saudi Arabia's $500 billion NEOM development phase-two financing window, which includes a planned 12,000-room luxury hospitality corridor opening 2027. Paramount Global's legacy hotel and resort licensing revenue—$1.8 billion trailing twelve months—positions the combined entity as the second-largest entertainment IP licensor to the global luxury accommodation sector after Disney, which books $2.4 billion annually from similar agreements.