Paramount Skydance is now tapping Middle-Eastern investors in hostile bid for Warner Bros. Discovery

Paramount Skydance’s quest for financing from the Persian Gulf to acquire Warner Bros. Discovery has raised questions among investors.

David and Larry Ellison, the father-and-son duo behind Paramount Skydance, are facing resistance from the WBD board and shareholders who have favored Netflix’s bid over theirs. The Ellisons are now making a hostile bid to acquire the media giant, arguing that their offer is superior to Netflix’s.

While the Ellisons criticize the Netflix deal for its regulatory risks and valuation of cable properties, sources close to WBD point out that Larry Ellison has committed a relatively small portion of his fortune to the deal, with the majority of financing coming from Middle Eastern sovereign wealth funds.

Despite the Ellisons’ efforts to sway shareholders, WBD’s CEO David Zaslav and Netflix’s CEO Ted Sarandos are lobbying investors to support their deal. The bidding war has escalated into a battle for control of valuable media assets.

As scrutiny intensifies, questions arise about Larry Ellison’s financial commitments and the involvement of Middle Eastern funds in the deal. The Ellisons defend the partnership with Middle East investors, highlighting the sophistication of the sovereign wealth funds and the additional financing from reputable institutions.

Investors like Mario Gabelli have pledged their support to the Ellisons, emphasizing the cash component of the deal. The Ellisons have made adjustments to their bid to make it more appealing, including increasing the cash portion and seeking additional funding sources.

Amidst the ongoing battle, concerns linger about the motives of Middle Eastern investors and the potential implications for US media control. Despite the controversies, WBD’s stock has seen a significant increase since the bidding war began.