Can Paramount Really Buy Warner Bros. Discovery With Middle Eastern Money?
The entertainment world is buzzing… and a bomb just detonated in the industry rumor mill. Reports claim that David Ellison’s newly merged Paramount–Skydance is preparing a colossal $71 billion bid to acquire Warner Bros. Discovery… a bid allegedly backed by investors from Abu Dhabi, Qatar, and Saudi Arabia.
Paramount, of course, has publicly refuted the specifics, saying any strategic plans are private. But let’s be honest… that could easily be corporate poker talk.
If they are assembling foreign financing, the last thing they’d want is to tip off rivals or trigger early regulatory pushback.
So let’s examine this scenario as if the rumors are real.
Because if you think this sounds massive… That’s because it is massive.
Which brings us to the only question that really matters.
Could the U.S. government actually allow this to happen?
Foreign Money Isn’t the Problem… Control Is
Yes, the deal involves billions from Gulf region sovereign wealth funds… but here’s the key detail
They would be minority investors. The controlling power would remain with Ellison’s U.S. based entity.
That matters because the United States doesn’t automatically reject foreign investment. What they do reject is foreign CONTROL over American media… especially when it involves.
News outlets like CNN
Cultural IP like DC, HBO, Warner Bros.
Sensitive internal data and communications
If Qatar, Saudi Arabia, and Abu Dhabi are simply writing checks but not calling the shots, the door stays open.
CFIUS Will Tear This Deal Apart Line-by-Line
Any foreign investment touching U.S. media triggers a national security review by CFIUS (Committee on Foreign Investment in the United States) and they will absolutely go over this deal with a magnifying glass.
They will likely demand
No foreign voting rights
No foreign appointed board members
Firewalls around CNN and all editorial decisions
Restrictions on access to internal data
If those conditions are accepted, CFIUS doesn’t automatically kill the deal. They simply cage the foreign influence.
The Real Threat Isn’t the Gulf Money… It’s Antitrust
Even if the foreign investment concerns are smoothed out, there’s still one giant mountain
Paramount + WBD is a monster merger.
Two major Hollywood studios combining
Two big streaming platforms merging
Enormous cable networks under one roof
The Department of Justice could argue this would create too much market power.
That means they would either have to.
Demand major divestitures (sell off certain channels or assets), or
Block the deal entirely on competition grounds.
This roadblock has nothing to do with foreign money and everything to do with size and redundancies.
The Political Blowback Will Be Loud
Even as minority investors, the mere involvement of Saudi Arabia, Qatar, and the UAE (United Arab Emirites) will spark headlines
“Foreign governments helping buy CNN”
“Gulf states funding control of iconic U.S. entertainment brands”
Congress, journalists, and rival bidders (like Comcast or Netflix) will absolutely use this as ammo.
But political noise isn’t the same as a legal barrier. Noise can complicate a deal… but CFIUS and DOJ make the final call, not Twitter.
So… Can This Deal Actually Happen?
Yes — but only under strict conditions.
Possible - If Gulf investors stay in the back seat, with zero editorial influence, and Paramount agrees to limits and firewalls.
Also possible - Regulators may approve it only if parts of WBD are sold off (CNN is the obvious candidate).
Not guaranteed - The sheer size of the merger could still get it blocked on antitrust grounds alone.
Look, the deal isn’t impossible but it’s far from a slam dunk.
It would require a tightly controlled structure, multiple concessions, and regulators willing to let two massive entertainment giants fuse into one.
If Ellison can satisfy national security concerns and smooth over competition issues, the bid could go through.
But one thing is undeniable
This would be the most politically and legally scrutinized Hollywood deal EVER.
