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business1d ago
Paramount ally RedBird says using Middle East money to help buy Warner Bros. could be a good idea
- Paramount plans to back the $47 billion equity portion of the WBD deal with the Ellison family and RedBird, while the rest is financed with debt.
- Gerry Cardinale says Paramount may syndicate equity with strategic, domestic, and foreign investors, beyond current disclosures.
- Cardinale frames Gulf sovereign wealth as potentially positive for a global media company, citing geopolitical shifts and globalization.
- Cardinale suggests Middle Eastern investors owning part of a media group could be a plus, noting Paramount aims to be a global company.
- Paramount previously disclosed planning to use $24 billion in funding from Saudi Arabia, Abu Dhabi, and Qatar for the WBD deal.
- Paramount has not publicly stated whether Gulf money remains part of the financing plan for the WBD deal.
- Cardinale did not comment directly on the current financing plan but discussed the broader approach to investors.
- The financing strategy relies on a combination of equity backstopped by private backers and syndicated investments.
- Paramount could sell portions of its equity commitment to other investors as part of the financing plan.
- The interview highlights a broader trend toward globalized financing for Hollywood deals.
- Paramount's financing update comes as it secures the WBD transaction amid shifting geopolitical investment patterns.
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