Saudi Billions: Warner Chiefs Refuse to Sell to Paramount

Warner Bros. Discovery has turned down a $24 billion takeover bid from Paramount, backed by Saudi Arabia’s sovereign wealth fund. The decision follows concerns over financing risks and potential Gulf influence in the entertainment giant’s future. The rejected offer is part of a broader push by Crown Prince Mohammed bin Salman to expand Saudi Arabia’s cultural and economic footprint.

The bid for Warner Bros. Discovery was led by Saudi Arabia’s Public Investment Fund (PIF), which has been aggressively investing in entertainment, sports, and gaming. Earlier acquisitions include gaming giant Electronic Arts, reflecting a strategy to boost the kingdom’s global image. Critics argue that a takeover by Gulf-backed firms like Paramount—or even Netflix—could tighten market control and reshape traditional cinema.

Warner’s board dismissed the offer as 'inferior' and risky, particularly due to its financial structure. Reports also suggest the PIF sought a board seat, raising further unease about external influence. Meanwhile, Jared Kushner’s firm, Affinity Partners Group, initially participated in the bid but pulled out before the final decision. The move aligns with Crown Prince Mohammed bin Salman’s efforts to rebuild Saudi Arabia’s reputation after past controversies. His recent White House visit in November 2025 signalled warming relations with the US. If the Warner deal collapses, analysts expect the PIF to pursue other high-profile entertainment investments.

The rejection leaves Warner Bros. Discovery’s future uncertain but underscores the growing role of Gulf money in global media. The company’s assets, from HBO Max to major film franchises, remain key targets for investors. Should alternative deals emerge, they will likely face similar scrutiny over ownership and market control.