"Paramount said that it lined up "an aggregate $24 billion commitment from three sovereign wealth funds" from Gulf countries, specifically Saudi Arabia, Abu Dhabi, and Qatar. Paramount said at the time that the sovereign wealth funds "agreed to forgo all governance rights (including board representation).""
""All the information that I've seen about that foreign debt ... is that would qualify under FCC rules as what we call bona fide debt, meaning it would be a very quick, almost pro forma review," Carr said. FCC precedents state that bona fide debt may include a guarantee for a loan or a standard loan in which the creditor does not possess an ownership or voting interest in the licensee."
"The Justice Department is reviewing the merger and is not likely to try to block it. "The agency is taking a softer stance on merger enforcement and hasn't blocked a deal on antitrust grounds since President Donald Trump took office," according to Bloomberg reporting on the regulatory environment."
Paramount obtained $24 billion in commitments from sovereign wealth funds in Saudi Arabia, Abu Dhabi, and Qatar, with these funds forgoing all governance rights and board representation. FCC officials indicated that the foreign debt would qualify as bona fide debt under FCC rules, requiring only a quick, pro forma review. The Justice Department is reviewing the merger and is unlikely to block it, particularly given the current administration's softer stance on merger enforcement. The deal still requires review by individual US states and international regulators. Paramount's total financing for the approximately $81 billion merger includes $47 billion pledged by the Ellisons and RedBird Capital Partners, with remaining funds financed through debt.
#paramount-merger-financing #sovereign-wealth-funds #regulatory-review #foreign-investment #media-industry-consolidation
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