Paramount has confirmed its Middle Eastern investors in an SEC filing on Tuesday.
Saudi Arabia’s Public Investment Fund, the L’Imad Abu Dhabi sovereign wealth fund, and Qatar Investment Authority’s QIA are partly funding Paramount’s $111bn acquisition of Warner Bros Discovery (WBD) alongside the Ellison family, RedBird Capital, and LionTree Investment.
While the filing did not reveal how much the Middle Eastern backers are investing, the Wall Street Journal said it amounts to $24bn. It is believed they will not take seats on the Paramount board or assume governance rights.
Larry Ellison, the father of Paramount CEO David Ellison and the centibillionaire co-founder of Oracle, and RedBird previously pledged to backstop the acquisition to the tune of more than $40bn.
US Democrats have cited concerns over Middle Eastern investment in Paramount, which owns CBS News and local stations and will own CNN should the WBD deal secure regulatory approval. The lawmakers have called on Congress to review the merger, and recently urged the Federal Communications Commission to review the case.
LionTree is new to the arrangement and is a New York-based boutique investment and merchant bank.
Paramount stock gained 10.7% after the filing to close the day on $10.90 as Wall Street reacted positively to the confirmation that Paramount is limiting its exposure through the investors. The stock has fallen by 17.3% for the year-to-date.
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