TLDR
- PSKY stock surged ~10.7% on April 7 after confirming Gulf sovereign wealth fund backing for the Warner Bros. Discovery deal.
- Saudi Arabia’s PIF, Qatar Investment Authority, and Abu Dhabi’s L’imad Holding Co. are equity syndication partners, committing a combined ~$24 billion.
- PIF alone is expected to contribute roughly $10 billion; investors will hold non-voting Class B stock.
- The deal, valued at up to $111 billion including debt, still awaits WBD shareholder and regulatory approval.
- The Ellison family and RedBird Capital retain all voting Class A stock, with no CFIUS or FCC review expected.
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Paramount Skydance got a major boost on Tuesday, April 7, as the company confirmed that three Gulf sovereign wealth funds have signed on as equity syndication partners for its planned acquisition of Warner Bros. Discovery.
Paramount Skydance Corporation Class B Common Stock, PSKY
The stock climbed 10.7% to close at $10.88, making it one of the better performers in the S&P 500 that session. At one point during the day it climbed even higher, reflecting early enthusiasm from investors.
The three new backers — Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, and Abu Dhabi’s L’imad Holding Co. — are expected to provide a combined $24 billion in equity financing. PIF is set to contribute roughly $10 billion of that total on its own.
These investors will receive Class B non-voting stock, priced between $12.00 and $16.02 per share, according to a regulatory 8-K filing. Investment bank LionTree is also part of the equity syndicate.
Paramount described the agreements as “an important milestone in the WBD transaction process,” adding that the diversification of its shareholder base and potential strategic opportunities enhance long-term shareholder value.
Gulf Funding Eases Pressure on Ellison and RedBird
The fresh capital reduces the financial load on the deal’s primary backers: RedBird Capital Partners and the Ellison family, headed by Larry Ellison — whose son David leads Paramount as CEO.
Paramount previously issued nearly $47 billion in equity that is “fully backed” by Ellison and RedBird. The new Gulf commitments help distribute that exposure, though Larry Ellison remains the guarantor if any investor pulls out.
On top of the equity, Paramount has locked in around $54 billion in debt financing from Bank of America, Citigroup, and Apollo Global Management. That debt is currently being syndicated to other institutions.
The deal itself was announced in February. Paramount agreed to buy Warner Bros. Discovery — home to HBO, CNN, and the Harry Potter franchise — in a transaction worth up to $111 billion including debt. The agreed price is $31 per share in cash for WBD stock.
Regulatory Review and Deal Timeline
The transaction still needs approval from WBD shareholders and is undergoing regulatory review in Europe. Executives are reportedly targeting a close as early as late July 2026.
The Gulf investors’ involvement is not expected to trigger a CFIUS review, as each will hold less than 25% of the combined entity. The FCC is also not expected to step in, given the voting structure.
Earlier versions of the deal had included Tencent and Affinity Partners as investors, but both have since exited.
On TipRanks, analysts currently hold a Moderate Sell consensus on PSKY, with five Hold and five Sell ratings. The average price target sits at $11.38, implying about 4.4% upside from current levels. Year-to-date, the stock is still down 18.2%.
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