Paramount Gets $24 Billion for Warner Bros. Deal - Intermediate - EN

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Paramount Skydance has reportedly secured nearly $24 billion from three Gulf wealth funds to help finance its planned acquisition of Warner Bros. Discovery. Saudi Arabia’s Public Investment Fund is expected to provide about $10 billion, while the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. have also made equity commitments. The extra funding would reduce pressure on Paramount as it works to complete one of the largest media deals in recent years.

David Ellison is leading the push for the merger, with support from his father Larry Ellison and private-equity firm RedBird Capital. The reported commitments would help cover part of the cost of the $81 billion transaction. Paramount had previously argued that the Ellison family could support the deal if outside financing fell through. Executives have reportedly told employees to prepare for a closing by the end of July.

Even with the financing in place, the transaction still faces regulatory approval. Experts expect attention from the Committee on Foreign Investment in the United States and the Federal Communications Commission. However, one analyst said the Gulf funds would receive non-voting shares and would not be represented on the board. That structure could reduce some scrutiny because the investors would not directly control the combined company.

If the acquisition goes through, the new company would unite major media assets such as HBO, CNN, CBS, Harry Potter, and The Godfather. Paramount has also lined up $54 billion in debt commitments from major banks, bringing the total value of the arrangement to $110 billion including debt. The company also agreed to cover expensive fees tied to the Warner Bros. deal, showing how competitive the bidding battle had become.

Table of Contents

Vocabulary Words List

secured — obtained successfully
Gulf wealth funds — large state investment funds from Gulf countries
finance — to provide money for something
planned acquisition — an intended company purchase
Public Investment Fund — Saudi Arabia’s large state investment fund
equity commitments — promises to invest money in exchange for ownership
reduce pressure — make a difficult situation easier
largest media deals — very big business agreements in media
leading the push — directing the effort
private-equity firm — a company that invests in businesses
cover part of the cost — pay for some of the expense
$81 billion transaction — the business deal valued at 81 billion dollars
outside financing — money from outside investors or lenders
fell through — did not happen in the end
prepare for a closing — get ready to finish the deal
regulatory approval — official permission from government authorities
Committee on Foreign Investment — a U.S. body that reviews some foreign deals
Federal Communications Commission — the U.S. agency that regulates communications
analyst — a person who studies business information
non-voting shares — shares without the power to vote
represented on the board — given seats in company leadership
reduce some scrutiny — lower the level of careful review
directly control — have immediate power over
combined company — the business formed after a merger
goes through — is completed successfully
media assets — valuable media brands and properties
debt commitments — promises from lenders to provide borrowed money
bidding battle — strong competition to win a deal
expensive fees — costly payments required by an agreement
including debt — counting borrowed money in the total

Fill In The Blanks Listening Practice

Paramount Skydance has reportedly secured nearly $24 billion from three to help finance its of Warner Bros. Discovery. Saudi Arabia’s is expected to provide about $10 billion, while the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. have also made . The extra funding would on Paramount as it works to complete one of the in recent years.

David Ellison is for the merger, with support from his father Larry Ellison and RedBird Capital. The reported commitments would help of the . Paramount had previously argued that the Ellison family could support the deal if fell through. Executives have reportedly told employees to by the end of July.

Even with the financing in place, the transaction still faces . Experts expect attention from the in the United States and the . However, one analyst said the Gulf funds would receive and would not be . That structure could because the investors would not directly control the combined company.

If the acquisition , the new company would unite major such as HBO, CNN, CBS, Harry Potter, and The Godfather. Paramount has also lined up $54 billion in from major banks, bringing the total value of the arrangement to $110 billion . The company also agreed to cover tied to the Warner Bros. deal, showing how competitive the had become.