Market Chatter: Tencent Said to Rejoin Paramount-Warner Bros Deal With Fresh Funding

MT Newswires Live03-09

Tencent (HKG:0700) is considering investing several hundred million dollars in Paramount Skydance's planned acquisition of Warner Bros. Discovery, Bloomberg News reported Monday, citing people familiar with the matter.

The Chinese technology company is expected to participate as a passive financial investor, the report said.

Paramount's December offer for Warner Bros. Discovery included a $1 billion equity commitment from Tencent, according to a U.S. Securities and Exchange Commission filing at the time.

The pledge was later withdrawn after Warner Bros. Discovery raised concerns that Tencent's participation could prompt national security scrutiny from U.S. regulators.

Warner Bros. Discovery subsequently agreed to be acquired by the David Ellison-led company after Paramount increased and revised its bid in a transaction valued at about $110 billion.

Tencent has not made a final decision on the investment and could still opt out, Bloomberg said, adding that the transaction may take time to complete.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment