Paramount (PSKY.US) speaks out: Middle Eastern Consortium joins forces to acquire Warner Bros. Discovery (WBD.US) for $71 billion, the report is seriously untrue.

Paramount Sky (PSKY.US) has stated that reports about its collaboration with a consortium of Middle Eastern sovereign wealth funds and its proposed $71 billion acquisition of Warner Brothers Discovery (WBD.US) are "completely inaccurate." According to sources, Paramount Sky, owned by David Ellison, is planning a joint bid with the Saudi Public Investment Fund, Qatar Investment Authority, and Abu Dhabi Investment Authority. A Paramount spokesperson stated: "The information released is completely false. This is a confidential process, and we respect that, so we will not comment until the process is completed." The offer for Warner Brothers is based on a valuation of approximately $28.65 per share, mainly supported by the Ellison family, with participation from Greg Cardinale's Redbird Capital. Each sovereign wealth fund is expected to contribute $7 billion, with Paramount Sky investing $50 billion. Warner Brothers' board has reportedly rejected Paramount's previous offers, which reached as high as $23.50 per share. Representatives of the sovereign wealth funds have not immediately responded to requests for comment. Following the reports, Warner Brothers' stock price rose 6.4% in New York, before partially retracting, and Paramount's stock also saw a 3.7% increase. Warner Brothers (which owns HBO, CNN, and its namesake movie studio) initiated a sale process in October after receiving multiple acquisition interests, with the bidding deadline set for Thursday. Apart from Paramount, Netflix (NFLX.US) and Comcast Corporation Class A (CMCSA.US) are expected to make offers for Warner Brothers' movie and streaming business, with Paramount being the only interested party in a complete takeover. If the deal goes through, it could reshape the media industry by bringing together two major movie studios and two influential news networks under one group, potentially triggering regulatory scrutiny. David Ellison, son of Oracle Corporation Chairman Larry Ellison, has been actively seeking to acquire Warner Brothers since completing the $8 billion merger of Paramount and Skydance in August. The Ellison family appears to have the support of US President Donald Trump, advocating that Paramount's offer represents the most straightforward deal. Warner Brothers CEO David Zaslav, on the other hand, leans towards splitting the company as originally planned, as he believes that separating the movie and streaming assets from the struggling cable TV assets could fetch a higher premium.