Paramount Skydance (PSKY) is close to securing about $24 billion in equity from major Gulf sovereign wealth funds to support its planned acquisition of Warner Bros. Discovery (WBD), The Wall Street Journal reported Sunday, citing people familiar with the matter.
The report said the funds include the Public Investment Fund, the Qatar Investment Authority, and Abu Dhabi's L'imad.
The Saudi fund is expected to contribute roughly $10 billion of the $24 billion, the report said, adding that the agreements could be finalized soon, with closing targeted as early as July, pending regulatory approval.
The agreements with investors, including the Qatar Investment Authority and Abu Dhabi's L'imad, are likely to be signed as soon as Monday, the people told The Wall Street Journal.
The foreign investors will hold small, non-voting stakes in the combined company, minimizing US regulatory scrutiny, according to the report.
Earlier potential backers, including Tencent and Affinity Partners, are no longer involved, the report said.
It added that Paramount has also lined up $54 billion in debt financing from Bank of America (BAC), Citigroup (C), and Apollo Global Management (APO).
Paramount Skydance, Public Investment Fund, the Qatar Investment Authority, and L'imad did not immediately respond to MT Newswires' request for comment.
(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.)
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