Warner Bros. shares jump as Paramount Skydance reportedly preps a $71 billion bid with Arab sovereign wealth funds
Shares of HBO and CNN parent Warner Bros. Discovery are climbing on Tuesday on a report that rival Paramount Skydance is prepping a $71 billion bid for the entertainment giant.
According to Variety, Paramount would front $50 billion for the deal, with $7 billion each coming from three Arab nations’ wealth funds (Saudi Arabia, Qatar, and the UAE).
Variety reports that each fund would receive a minority stake in Warner Bros. as well as “an IP, a movie premiere, a movie shoot.” Warner Bros. Discovery shares jumped 6% following Variety’s report, before paring its gains after Paramount called the news “categorically inaccurate.”
WBD is said to have already rejected three previous offers from Paramount. The company previously set a deadline of November 20 (this Thursday) to hear bids from interested parties — a group that reportedly also includes Comcast and Netflix.
The Saudi Arabian wealth fund, PIF, made headlines in September when it struck a $55 billion take-private deal for the gaming giant Electronic Arts — the largest leveraged buyout in corporate history.
Variety reports that each fund would receive a minority stake in Warner Bros. as well as “an IP, a movie premiere, a movie shoot.” Warner Bros. Discovery shares jumped 6% following Variety’s report, before paring its gains after Paramount called the news “categorically inaccurate.”
WBD is said to have already rejected three previous offers from Paramount. The company previously set a deadline of November 20 (this Thursday) to hear bids from interested parties — a group that reportedly also includes Comcast and Netflix.
The Saudi Arabian wealth fund, PIF, made headlines in September when it struck a $55 billion take-private deal for the gaming giant Electronic Arts — the largest leveraged buyout in corporate history.
