Larry Ellison’s Warner Bros. Discovery Bid Could Hand Middle Eastern Royals Stake in CBS and CNN

Paramount Global’s hostile bid to acquire Warner Bros. Discovery has triggered national security concerns among U.S. Lawmakers, as Middle Eastern sovereign wealth funds emerge as major financial backers of the $78 billion transaction. The deal, if successful, would grant foreign entities—including Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi’s L’Imad, and Qatar Investment Authority (QIA)—a significant ownership stake in iconic American media assets such as CNN, HBO, and CBS.

Middle Eastern Funds Fuel Paramount’s Bid

Paramount Skydance, the entity formed by billionaire Larry Ellison’s family to pursue the acquisition, confirmed in an April 2026 SEC filing that Middle Eastern investors are providing a substantial portion of the financing. The filing disclosed that Saudi Arabia’s PIF, Abu Dhabi’s L’Imad, and Qatar’s QIA are among the equity stakeholders, alongside U.S.-based firms RedBird Capital and LionTree Investment Fund. While the exact financial breakdown remains undisclosed, industry sources cited in primary reporting indicate that these funds are contributing more than half of the total capital for the bid.

The involvement of foreign sovereign wealth funds has raised alarms among congressional Democrats, who argue that the deal could compromise the editorial independence of major U.S. News and entertainment outlets. Warner Bros. Discovery owns CNN, HBO, and the Warner Bros. Film and television studios, which produce content with global cultural influence, including franchises like Harry Potter, The Matrix, and Friends. The prospect of Middle Eastern royal families gaining partial control over these assets has intensified scrutiny from regulators and lawmakers.

Paramount’s Hostile Approach and Regulatory Hurdles

Paramount’s bid represents a dramatic escalation in its pursuit of Warner Bros. Discovery. Initially, the Warner board rejected Paramount’s all-cash offer of $30 per share, opting instead for a competing bid from Netflix, which valued the Warner Bros. Studio and HBO Max streaming service at $27.75 per share. However, Paramount responded with a hostile takeover attempt, appealing directly to Warner shareholders and arguing that its offer is superior. The company has criticized Netflix’s bid as risky, citing potential antitrust complications and an optimistic valuation of Warner’s cable properties, including CNN.

Larry Ellison, the co-founder of Oracle and the third-richest person in the world, has provided a personal financial guarantee to backstop the deal, known as the “Ellison Guarantee.” However, primary sources reveal that his direct contribution amounts to approximately $12 billion—less than 5% of his estimated $243 billion net worth. The bulk of the financing is coming from the Middle Eastern funds, a detail that has drawn particular attention from lawmakers concerned about foreign influence over U.S. Media.

National Security Concerns Take Center Stage

Congressional Democrats have framed the deal as a potential national security risk, emphasizing the role of foreign sovereign wealth funds in financing the acquisition. In a December 2025 statement, lawmakers highlighted the deep ties between these funds and their respective governments, raising questions about whether editorial decisions at outlets like CNN and HBO could be influenced by geopolitical considerations. The Warner Bros. Studios in Burbank, which have produced some of the most culturally significant American films and television shows, are seen as particularly sensitive assets in this context.

Paramount has sought approval from the Federal Communications Commission (FCC) for increased foreign ownership in the deal, a request that is likely to face rigorous review. The FCC has historically scrutinized foreign investment in U.S. Media companies, particularly when it involves entities linked to governments with records of restricting press freedom. The outcome of this review could determine whether the deal proceeds or faces additional legal and regulatory challenges.

What’s Next for Warner Bros. Discovery?

The fate of Warner Bros. Discovery remains uncertain as the bidding war enters a critical phase. Paramount’s hostile approach has put pressure on Warner’s board to reconsider its earlier decision to accept Netflix’s offer. However, the regulatory and political hurdles posed by the involvement of Middle Eastern funds may complicate the transaction. Industry analysts suggest that the deal’s success could hinge on whether Paramount can address lawmakers’ concerns or restructure its financing to reduce foreign ownership stakes.

For now, the focus remains on the FCC’s review and the broader implications of foreign investment in U.S. Media. If approved, the deal would reshape the entertainment landscape, consolidating control of major studios and news outlets under a single entity with significant international financial backing. The outcome will likely set a precedent for future media mergers and acquisitions, particularly those involving foreign investors.

Key Assets at Stake

• CNN: One of the largest and most influential news networks in the U.S.
• HBO: A premium cable and streaming service known for critically acclaimed series like Game of Thrones and The Sopranos.
• Warner Bros. Studios: The production company behind iconic films such as Casablanca, Harry Potter, and The Dark Knight.
• CBS: A major broadcast network with a long history in American television.
• HBO Max: A leading streaming platform with a vast library of films and original content.

The potential merger underscores the growing intersection of global finance and U.S. Media, raising questions about the future of editorial independence and cultural influence in an era of increasing consolidation.