Middle Eastern Sovereign Wealth Funds Pump Eye-Watering Sums Into $111B Paramount-Skydance Acquisition of Warner Bros. Discovery

Netflix has stepped back from its bid to acquire Warner Bros. Discovery, opening the door for Paramount Skydance to take control in a deal valued at $111 billion. The announcement comes after a heated bidding war between two media giants. According to CNN, Netflix called the deal “no longer financially attractive” after Paramount Skydance raised its offer to $31 per share, outpacing Netflix’s $27.75 per share bid.

Paramount Skydance, led by David Ellison, the son of Oracle co-founder Larry Ellison, proposed an all-cash purchase of Warner Bros. Discovery. Roughly $24 billion of the deal is expected to be funded by Middle Eastern sovereign wealth funds from Saudi Arabia, the United Arab Emirates, and Qatar.

The involvement of these investors has raised questions about foreign influence in American media, given Paramount’s ownership of CBS, CNN, and other entertainment assets.

David Zaslav, CEO of Warner Bros. Discovery, expressed optimism about the merger. “Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together telling the stories that move the world,” he said.

The deal has faced criticism from media watchdogs and political figures. Free Press, an advocacy group, warned that it could give “a family of pliant billionaires even more control of vast swaths of our news coverage, TV stations and movie studios.”

Senator Elizabeth Warren called the acquisition an “antitrust disaster” and pointed out that Trump-aligned billionaires could control what Americans watch and how much they pay. Alvaro Bedoya, a former Democratic member of the Federal Trade Commission, highlighted the potential impact of the deal on CBS, CNN, HBO, and even TikTok, noting the influence of Middle Eastern investors.

Paramount Skydance’s funding strategy has drawn particular scrutiny because of the $24 billion backing from the sovereign wealth funds. Analysts and critics are concerned about the potential for these foreign investors to indirectly influence content decisions in American media.

This acquisition comes after Paramount merged with Skydance in an $8 billion deal last August, which already received close regulatory scrutiny. Paramount has also been reshaping CBS News under Bari Weiss, who was appointed editor-in-chief after her company, Free Press, was acquired for $150 million.

Weiss has made controversial decisions, including overseeing layoffs and delaying a “60 Minutes” segment about Venezuelan migrants deported to El Salvador, which critics said was influenced by political pressure.

Netflix had initially planned to acquire most of Warner Bros. Discovery for $83 billion, including HBO, HBO Max, and Warner Bros. studios. The deal would have spun off cable networks like CNN into an independent company. Netflix’s withdrawal leaves Paramount Skydance as the likely buyer, with a focus on an all-cash offer supported in large part by Middle Eastern sovereign wealth funds.

The combination of Paramount Skydance and Warner Bros. Discovery would create one of the largest media empires in the world, with billions of dollars of foreign investment fueling its operations. The White House and Justice Department, which will oversee antitrust review, have not yet commented.

This deal highlights the growing role of Middle Eastern sovereign wealth funds in shaping major media companies. The question now is how their involvement might influence what content reaches American audiences. Do you think foreign investors should have this level of control over U.S. media? Share your thoughts in the comments.