Paramount Skydance's addition of three Gulf sovereign wealth funds to the cast of its $108 billion hostile bid for Warner Bros Discovery marks a relatively rare alliance among the states as they build their own entertainment industries.
Saudi Arabia's Public Investment Fund (PIF,) Abu Dhabi's L'imad Holding Company, and the Qatar Investment Authority (QIA) have agreed to back the deal, Paramount said on Monday.
Paramount also has backing from Affinity Partners, started by Jared Kushner, which has investments from funds in Qatar and the United Arab Emirates.
The decision to join forces on a single bid and grab a share of some of Hollywood's crown jewels underscores an appetite among the oil-dependent Gulf states for assets from production to content and their growing clout in global dealmaking.
"A joint three-way alliance is very unusual, but it allows the three countries to step outside their regional media empires and brings them straight into the media big league," said Neil Quilliam, partner at Azure Strategy in London.
It also fits with their "joint aspirations to become global influencers and to shape new media narratives", he added.
PIF, the Abu Dhabi government on behalf of L'imad and the QIA, did not immediately respond to requests for comment.
Gulf sovereign funds have previously invested in the same companies, but have rarely joined forces on a single takeover.
For example, Mubadala and PIF invested in India's Reliance Retail in 2020, and were joined by the QIA and Abu Dhabi Investment Authority in 2023.
The deal size may have driven the need for several funds, said one banker from the region who is not involved, adding that it was unusual for Gulf SWFs to participate in hostile bids.
Because the investors will not have governance rights, including board seats or voting rights, their involvement will not require sign off by the U.S. Committee on Foreign Investment (CFIUS), Paramount said in a filing.
Courting filmmakers, building theme parks
From courting filmmakers to opening theme parks and cinemas, Gulf states are keen to expand their own entertainment sectors.
"This is a strategic and high-priority investment space for Gulf sovereign and other investors," said Robert Mogielnicki, a political economist specializing in the Middle East.
"The acquisition would give them ownership of some of the world's most iconic shows and access to a whole new audience," said Quilliam.
Universal Pictures' 2015 release Furious 7 was filmed in Abu Dhabi including its stars walking down the steps of the Emirates Palace to sports cars racing through its Liwa Desert.
In September, PIF bought a majority stake in Saudi media giant MBC, which operates 13 free-to-air TV channels and runs the streaming-platform Shahid, known as the Netflix of the Middle East.
In the same month, an investor group led by PIF agreed to buy videogame developer Electronic Arts in a $55 billion deal - the largest leveraged buyout in history - underscoring ambitions to make Saudi Arabia a global games and sports hub.
In 2018, it agreed to allow the first cinemas to open in 35 years, striking a deal with AMC Entertainment.
Hollywood-backed theme parks are also popping up in the region. In May, Walt Disney announced plans for its first in the Middle East, joining nearby Warner Bros World Yas Island in Abu Dhabi.
Big commitments to the United States
The UAE, Saudi Arabia and Qatar have also made large investment commitments to the United States this year, deepening ties to the Trump administration.
Saudi Arabia has committed to investing $1 trillion following crown prince Mohammed bin Salman's recent visit to Washington, up from the $600 billion previously.
Abu Dhabi has pledged $1.4 trillion for U.S. investments, while Qatar plans $500 billion over the next decade.
