Paramount Sky (PSKY.US) is in negotiations with the Gulf Sovereign Wealth Fund to inject nearly $24 billion to support the acquisition of Warner Brothers Discovery (WBD.US).

According to reports, Paramount Skydance (PSKY.US) is currently in negotiations with three sovereign wealth funds led by Saudi Arabia, intending to receive a commitment of nearly $24 billion in equity to support its acquisition of Warner Bros. Discovery (WBD.US). The American entertainment giant announced in February of this year that it had agreed to acquire a rival company for a total transaction value of $110 billion (with an equity value of $81 billion), with the deal expected to be completed in the third quarter. This merger will integrate major studios and television networks such as CNN and CBS, allowing them to be more competitive in the market amidst the ongoing shift of traditional linear TV viewers to streaming platforms. According to sources familiar with the matter, to support this acquisition, the Public Investment Fund of Saudi Arabia (PIF) has agreed to provide approximately $10 billion in funding. Reports suggest that other contributors may include the Qatar Investment Authority and Abu Dhabi's L'imad Holding. PIF, Qatar Investment Authority, and L'imad Holding did not respond to requests for comment outside of working hours. Paramount declined to comment. It is understood that the Gulf region investors will not have voting rights in the post-merger Paramount-Warner entity. Furthermore, Paramount executives expect that the involvement of these funds will not trigger a review by the Committee on Foreign Investment in the United States (CFIUS) or the Federal Communications Commission (FCC).