Ross Gerber Rips $24 Billion Saudi-Funded Hollywood Push, Questions Paramount Skydance–Warner Bros. Disco

Investor Ross Gerber took aim at reports that roughly $24 billion in equity commitments from Gulf sovereign funds are backing a proposed $110 billion merger between Paramount Skydance Corp. and Warner Bros. Discovery, saying the wave of Middle Eastern funding risks underestimating the dangers of the entertainment business. The funding — reported to be led by Saudi Arabia’s Public Investment Fund alongside the Qatar Investment Authority and Abu Dhabi-based funds — was described in reporting by The Hollywood Reporter and summarized by Benzinga as part of a financing package that could reshape the U.S. media landscape.

Gerber, reacting on X, warned that "in every generation" Hollywood attracts a new wave of investors who may underestimate the risks of the entertainment business.

Context and details

• Scale of the deal: The tie-up between Paramount Skydance and Warner Bros. Discovery has been described as a proposed $110 billion megamerger that would combine Paramount’s film library with Warner Bros.’ portfolio, spanning HBO, CNN and global television networks.
• Sources and allocation: Reports place roughly $24 billion of funding coming from Middle Eastern investors, with Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and Abu Dhabi-based funds among the backers. While regulatory filings have not specified exact contributions, sources cited by reporters indicate Saudi Arabia could account for about half of the total.
• Geopolitical and regulatory scrutiny: Beyond the financial scale, critics have raised concerns about potential political influence and soft power as Gulf sovereign funds deepen investments in U.S. media assets.
• Industry pushback: More than 1,000 actors and creatives — including Joaquin Phoenix, Ben Stiller and Kristen Stewart — signed an open letter urging regulators to block the merger, warning it could "undermine competition, weaken independent voices and concentrate too much control in the hands of a few powerful stakeholders," according to coverage of the letter.
• Market reaction: Benzinga reported that Paramount Skydance (NASDAQ: PSKY) closed at $10.73 on Monday, up 1.04% during the regular session, then slipped 0.47% to $10.68 in after-hours trading. Benzinga Edge data places PSKY in the 87th percentile for Value, a metric the outlet says indicates weak performance across short, medium and long-term timeframes.

Observers note that regulatory filings related to the financing have so far lacked public detail on the exact allocation of the $24 billion in commitments, leaving open questions about investor governance arrangements and the terms that would accompany such sizable backstops. The involvement of major Gulf sovereign funds — particularly if Saudi Arabia’s Public Investment Fund supplies roughly half of the reported equity — is likely to intensify political and antitrust scrutiny as regulators and lawmakers weigh the transaction.

Looking ahead, the combination of investor concern voiced by figures like Gerber, a high-profile open letter from creative industry talent, and outstanding disclosure questions suggests the deal will face not only financial due diligence but also sustained regulatory and public debate. Market participants will be watching subsequent filings and any regulatory inquiries closely for clarity on funding commitments, governance terms and whether the political and competitive objections will materially affect the merger’s path forward.