Paramount Skydance Stock Jumps 9% on $24B Gulf Funding for Warner Bros Takeover Bid

Paramount Skydance Corp. shares surged nearly 9% in morning trading Tuesday after reports that the newly formed media company moved closer to securing $24 billion in equity commitments from Middle Eastern sovereign wealth funds to back its proposed $81 billion to $110 billion takeover of Warner Bros. Discovery. The stock (NASDAQ: PSKY) climbed to $10.74, up $0.88 or 8.98%, by 10:53 a.m. EDT on heavy volume, reversing some of the year’s earlier losses as investors reacted to the potential funding package reportedly led by Saudi Arabia’s Public Investment Fund, alongside the Qatar Investment Authority and Abu Dhabi investors.

"This financing de-risks the Warner deal significantly," one media analyst noted, pointing to improved balance sheet flexibility as Paramount Skydance navigates antitrust reviews and integration planning.

Context and deal mechanics

Paramount Skydance, created from the $8 billion merger of Skydance Media and Paramount Global that closed in August 2025, has been aggressively pursuing Warner Bros. Discovery since early 2026 and outbid Netflix in February when Warner’s board deemed Paramount’s revised all-cash offer a "superior proposal." A special shareholder vote for Warner Bros. Discovery is scheduled for April 23 to approve the transaction, and the Hart-Scott-Rodino waiting period has already expired.

On Tuesday the company filed an 8-K with the SEC detailing an amendment to its certificate of incorporation that increases authorized Class B shares and clarifies dividend rights, alongside plans for a warrant dividend to existing shareholders after canceling a prior rights offering. The Wall Street Journal first reported the talks on Sunday, and sources indicated signed commitments could be finalized soon.

• Equity package under discussion: $24 billion from Gulf sovereign investors (PIF, Qatar Investment Authority, Abu Dhabi investors)
• Proposed transaction value range: $81 billion to $110 billion
• PSKY trading: $10.74 by 10:53 a.m. EDT, up 8.98%; traded near $9.85 at Monday’s close
• Market capitalization: roughly $10.6 billion to $11 billion
• Trailing 12-month revenue: near $29 billion
• Wells Fargo price target: lowered to $8 from $10 on April 2, with an Underweight rating

Paramount Skydance’s assets would combine Paramount’s CBS, MTV, Nickelodeon and Paramount+ with Warner’s HBO, CNN, Warner Bros. film studio and Discovery channels. Company leadership under chairman and CEO David Ellison—son of Oracle co-founder Larry Ellison—has described the potential combination as a way to create a "next-generation" media powerhouse and has emphasized a tech-forward approach blending Hollywood creativity with data-driven decision-making.

Outlook and risks

Analysts say the $24 billion backing would reduce reliance on debt and could help satisfy regulatory scrutiny, but substantial challenges remain. The deal raises antitrust questions for the Department of Justice and the Federal Trade Commission, and critics warn of reduced competition and higher prices for consumers. Integration planning is reportedly underway, yet full closure could stretch into late 2026 depending on regulatory timelines and the April 23 shareholder vote.

Investors will watch upcoming milestones closely: completion of any formal sovereign commitments, Q1 2026 earnings expected in early May, and the Warner shareholder vote. Even with funding in place, analysts caution the combined company must deliver on cost synergies and subscriber growth to justify the premium and restore confidence after PSKY’s volatility earlier this year.