"The governments of Saudi Arabia, Qatar, and Abu Dhabi want to invest billions of dollars into a would-be mega media conglomerate made up of Paramount and Warner Bros. Discovery. What would they get for their money? Spoiler: I don't know. And Paramount, the company that wants to use the three oil nations to help finance its bid for WBD, won't say. But it sure seems like a question worth asking, as Paramount launches a hostile bid for WBD after losing last week's auction to Netflix."
"As of a week ago, those three countries were going to kick in $24 billion - double the $11.8 billion the Ellison family planned to invest in WBD. Now, Paramount won't say how much the three countries' sovereign wealth funds plan to invest in their newest proposal. It says Larry and David Ellison, who currently own Paramount, along with RedBird Capital, the private equity group, will "backstop" the deal - meaning they promise to finance all of it if necessary."
"But Paramount still anticipates those three countries will ultimately invest in a combined Paramount/WBD, along with Jared Kushner - Donald Trump's son-in-law, whose Affinity Partners group invests money on behalf of ... Saudi Arabia, Qatar, and Abu Dhabi, among others. The difference this time around, Paramount says, is that those countries' sovereign wealth funds won't have any say in how a combined Paramount-WBD would operate. They wouldn't get board seats, voting rights, or any other governance over the company. Paramount declined to comment."
Larry and David Ellison launched a hostile bid to merge Paramount and Warner Bros. Discovery after losing an auction to Netflix. The proposal involves sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi as potential investors, with prior plans for those countries to provide roughly $24 billion versus an $11.8 billion Ellison family contribution. Paramount and partners, including RedBird Capital, will backstop the deal and promise to finance it if necessary. The plan anticipates investment from Jared Kushner’s Affinity Partners. The proposal claims the sovereign funds would hold no board seats, voting rights, or governance over the combined company.
Read at Business Insider
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