👳🏻‍♂️ Paramount Seeks Approval to Utilize Arab Capital for WBD Acquisition

Capital from three major sovereign wealth funds is set to serve as the bedrock for the historic $111 billion acquisition of Warner Bros. Discovery (WBD).

Arab Capital and American Control

According to the petition, signed by Paramount’s Chief Legal Officer Makan Delrahim, the following funds are slated to participate in the financing:

• PIF (Public Investment Fund of Saudi Arabia): Set to become the largest stakeholder with a 15.1% share.
• L’Imad (Abu Dhabi): Set to hold 12.8%.
• Qatar Investment Authority: Set to hold 10.6%.

Together, these three funds will provide $24 billion, concentrating 38.5% of Paramount’s equity in their hands. However, the company emphasizes that these foreign investors will receive exclusively non-voting shares. Full control over 100% of the voting stock will remain with David Ellison, his father Larry Ellison, and RedBird Capital.

Why FCC Approval is Required

Because Paramount owns a network of broadcast television stations, U.S. law strictly limits direct foreign ownership (typically capped at 25%). In its filing, the company is requesting an exception, noting that total foreign participation following the reorganization will reach approximately 49.5%.

Paramount’s legal team argues that the influx of overseas capital is vital for the industry. The funds are earmarked for:

• Modernizing digital infrastructure and streaming services.
• Preserving the viability of regional broadcast stations.
• Creating a powerhouse capable of rivaling tech giants like Netflix and Apple.

Next Steps

WBD shareholders have already approved the merger. The FCC request is a standard procedure for transactions of this magnitude. Notably, Paramount is also coordinating with “Team Telecom,” the interagency committee that reviews deals for national security concerns.

Paramount representatives are confident that the alliance between the Ellison family and Middle Eastern capital will forge a “new champion” in the creative content market, ensuring financial stability as the era of traditional linear TV declines.