Abu Dhabi’s L’Imad joins Paramount backers in Warner Bros. bidding war

Little-known Abu Dhabi state investment vehicle L’Imad Holding Co. has joined the fray in the Warner Bros. bidding war, backing a new $108 billion hostile offer from David Ellison’s Paramount, along with Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and Jared Kushner’s Affinity Partners.

Under the renewed bid, the three Gulf funds will provide $24 billion, the Financial Times reports. RedBird Capital Partners and Larry Ellison will backstop the $40.7 billion of equity in the $30-a-share bid, while Bank of America Corp., Citigroup Inc. and Apollo Global Management Inc. are providing the debt commitment via a bridge loan, Bloomberg reports.

Paramount Skydance is attempting to torpedo Netflix’s $72 billion deal, made last week following a three-way contest which also included Comcast.

L’Imad, which is replacing the Abu Dhabi Investment Authority in the latest iteration of the Paramount bid, first made headlines in October when it bought a $7 billion stake in real estate investor Modon from IHC Real Estate Holding and Alpha Dhabi Holding, both subsidiaries of Sheikh Tahnoon bin Zayed’s International Holding Co.

Ellison gets support from Gulf funds for Warner Discovery bid

The Gulf’s three biggest sovereign wealth funds have all thrown their weight behind Paramount Skydance in the three-way bidding war for Warner Bros. Discovery, the owner of CNN, HBO and DC Comics.

Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and the Abu Dhabi Investment Authority are among the investors backing David Ellison’s sweetened bid for the entertainment giant, which also includes financing from RedBird Capital and Apollo Global Management, Variety reports. Netflix and Comcast have also renewed their bids, with the streaming flicks leader seeking only the Warner Bros. part of the business.

It is understood that Paramount’s all-cash offer is still mostly funded by the family of Oracle co-founder and billionaire Larry Ellison and son, David, and the amount offered by the three Gulf funds does not meet the threshold for requiring U.S. foreign investment approvals. Paramount’s previous non-binding bid of $24 a share submitted on Nov. 20 did not involve the sovereign funds, Variety said, clarifying its earlier reporting.

In whatever form it takes, a full or partial sale of Warner Bros. Discovery has the potential to reshape the media and entertainment landscape in the Gulf, where the company has far-reaching interests, from content streaming and theme park branding deals to a CNN bureau. 

In the UAE, Warner Bros. Discovery paid $57 million in March for a 30% share in Dubai-based streamer OSN, which is now hosting its high-value content in the region, including HBO hits like “The Sopranos” and “Succession,” and counts the Abu Dhabi and Kuwait royal families as its other shareholders.