Three Middle Eastern funds have pledged $24 billion to provide initial funding for Paramount Skydance Corp (PSKY.US) in its bid to acquire Warner Bros. Discovery (WBD.US). However, this figure only scratches the surface. Given their long-standing financial ties with private equity consortiums behind the scenes, additional capital may flow through fund mezzanine layers, potentially pushing the total exposure beyond $24 billion.
Earlier this week, Saudi Arabia's Public Investment Fund (PIF) joined forces with Qatar Investment Authority and Abu Dhabi's lesser-known L'imad Holding Co. to finance this hostile takeover attempt. These funds are managed by wealthy Gulf nations that have consistently injected massive capital into global acquisition firms. For instance, Apollo Global Management (APO.US) is among the institutions participating in financing Paramount's $54 billion acquisition offer.
Abu Dhabi's Mubadala Investment Co. maintains a longstanding partnership with Apollo, while PIF's venture capital arm has previously invested in Apollo-managed funds. Additionally, PIF, Qatar Investment Authority, and Abu Dhabi's Lunate collectively invested billions in Affinity Partners. Notably, Jared Kushner's firm has connections with Mubadala, having co-invested with the sovereign fund in a Brazil-based fast-food chain.
The Warner Bros. bid comes just months after PIF and Affinity Partners made headlines with a $55 billion offer for Electronic Arts (EA.US). Reports indicate Kushner played a central role in facilitating negotiations. Oracle co-founder Larry Ellison, who maintains close ties to the region, also appeared in related discussions.
Gulf investors plan to provide non-voting equity financing while relinquishing all governance rights—a structure designed to avoid requiring CFIUS approval. This move reinforces a growing trend where Middle Eastern entities increasingly serve as powerful financial backers for global deals. According to Global SWF, five wealth funds from Abu Dhabi, Qatar, and Saudi Arabia deployed $82 billion last year, accounting for over 60% of total sovereign wealth fund investments worldwide.
These investments span sectors from finance to artificial intelligence as Gulf governments seek to build post-oil growth engines. A successful Warner Bros. acquisition would also expand soft power influence, granting Middle Eastern investors stakes in iconic assets including Warner Bros. studios, HBO, and CNN networks. This attractive proposition has brought together Emirati, Saudi, and Qatari capital in a rare unified transaction—the combined sovereign wealth of these nations exceeds $3 trillion.
Diego Lopez, founder of Global SWF, noted: "This suggests either an unmissable deal or third-party mediation—potentially by Affinity Partners." As of December 11, 2025, the Warner Bros. Discovery acquisition has escalated into a bidding war. Netflix (NFLX.US) reached a preliminary $82.7 billion agreement on December 5 to acquire Warner's studios and HBO Max while divesting cable channels. However, Paramount countered on December 8 with a hostile $108.4 billion all-cash offer ($30/share) for all assets, including the linear networks Netflix excluded. Paramount claims its proposal offers superior value, faster certainty, and fewer antitrust hurdles.
Warner Bros.' board is reviewing Paramount's offer but currently maintains its Netflix recommendation. Both deals face rigorous antitrust scrutiny and have sparked national security concerns due to Middle Eastern sovereign wealth involvement and political sensitivities surrounding former President Trump's public statements.
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