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.

Paramount bid for Warner Bros. Discovery bid may get Gulf cash

Speculation is growing over the role of Gulf sovereign wealth funds in Paramount’s bid for Warner Bros. Discovery, despite the media and entertainment company attempting to throw cold water on the rumors.

Paramount is seen as the favorite among a cohort of potential suitors, including Netflix and Comcast, which are preparing bids for the entertainment conglomerate, which owns iconic brands including CNN, HBO and DC Comics.

Variety reported on Tuesday that the Ellison family, which owns 100% of Paramount Skydance, was putting together a $71 billion bid with backing from Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and the Abu Dhabi Investment Authority.

Paramount responded by saying the information in the report was “categorically inaccurate.” However, the Financial Times reported that Paramount held “preliminary talks” with the PIF and other investors about backing the deal separately.

Warner Discovery expands in Gulf amid demand for Arabic content

Warner Bros. Discovery is planning to use its expansion in the Middle East region as a major stepping stone towards becoming a top-three global streamer, a senior executive says.

The U.S. media giant, which bought a one-third stake in Dubai streaming company OSN in March for $57 million, is holding initial team meetings this week with its new affiliate to pinpoint a successful direction for Arabic content, The National reports. 

Global media companies are paying notice to the rapidly growing demand for Arabic-language content, which grew by 16 times between 2020 to 2024, according to research by Parrot Analytics and Rise Studios.

For Warner Bros., the question of how to win over Middle East audiences starts with “multi-local” content, a strategy that has proven successful in other parts of the world. “Once a story succeeds in a particular country, we try to see if it resonates in another and give it the needed funding to travel,” Jamie Cooke, Warner Bros. Middle East lead, told The National. 

“We’ve tried in the past to produce something from here that works everywhere,” Cooke said. “It’s very hard. If you try to create something for the world [from the start]. It means nothing to everyone.”

Following the OSN deal, Warner Bros. moved quickly to include Discovery+ on OSN+ earlier this month, cementing the local partner’s position as the region’s quality subscription service, already home to exclusive HBO programming, including classic TV mob drama “The Sopranos.”