Paramount has lined up nearly A$37 billion in equity support from a group of sovereign wealth funds as it pushes ahead with its planned takeover of Warner Bros. Discovery. The funding is being led by Saudi Arabia’s Public Investment Fund, which is contributing roughly A$15 billion, according to sources familiar with the arrangement.

Additional backing is coming from Qatar Investment Authority and Abu Dhabi-based L’imad Holding Co., forming a significant pool of capital to support the transaction. The agreements arrive at a time of heightened geopolitical tension in the Middle East, adding a broader context to the investment activity.

The funding is intended to ease the financial burden on Paramount’s backers, including David Ellison and RedBird Capital Partners, as they work to complete the acquisition. Paramount has previously stated that even without external investors, the Ellison family would be prepared to cover the full equity requirement if necessary.

Importantly, the participating funds are not expected to hold voting control in the combined company. Each investor will own well below 25 per cent of the merged entity, which reduces the likelihood of triggering regulatory scrutiny from US authorities such as the Committee on Foreign Investment or the Federal Communications Commission.

Paramount first revealed plans in February to acquire Warner Bros. Discovery in a deal valued at around A$170 billion, including debt. The transaction is still awaiting regulatory clearance in Europe, although internal preparations suggest the company is aiming to finalise the deal as early as late July.

The agreement follows a competitive process in which Paramount ultimately secured Warner after increasing its offer, overtaking a rival bid from Netflix. Earlier iterations of the deal included potential support from other investors, including Tencent and Affinity Partners, though both are no longer involved.

Alongside the equity commitments, Paramount has also arranged approximately A$83 billion in debt financing from major institutions including Bank of America, Citigroup and Apollo Global Management. Portions of this debt are now being distributed to a wider group of lenders.

With both equity and debt funding largely in place, Paramount is moving closer to completing one of the largest media transactions in recent years, positioning the combined company as a major force across film, television and streaming.