Saudi Arabia’s Public Investment Fund (PIF) has surged ahead as the top contender in a high-stakes bidding war for Warner Bros. Discovery (WBD), the $57 billion media behemoth, with negotiations accelerating toward a potential holiday-season deal that could redraw the global entertainment map under Gulf ownership.
The sovereign wealth vehicle, managing over $900 billion in assets, is in advanced talks with WBD executives, sources close to the matter revealed, following the US company’s recent pivot from a planned corporate split into entertainment/streaming and news/sports arms.
WBD, reeling from a $9.1 billion writedown on its linear TV assets earlier this year, signalled openness to unsolicited offers in October, pausing the restructuring to explore strategic alternatives. CEO David Zaslav, who has steered the firm since its 2022 merger of WarnerMedia and Discovery, has prioritised bolstering the balance sheet amid streaming wars and cord-cutting woes.
While no direct quotes emerged from Zaslav or PIF officials, insiders described the Saudi overtures as “compelling” due to their scale and long-term vision for content investment. The fund, which already holds stakes in Newcastle United football club and Lucid Motors, views WBD’s trove — encompassing HBO, CNN, DC Comics and Max — as a gateway to Hollywood dominance.
Rival suitors, including Netflix, Amazon and Comcast, have circled but lag behind, with Comcast CEO Brian Roberts eyeing a joint venture with PIF to build Saudi media infrastructure. A $60 billion cash bid from Paramount Global and Skydance Media, pegged at nearly $24 per share, was rebuffed last month as undervaluing the assets.
The prospective acquisition, potentially valuing WBD at a premium to its current $20 billion market cap, faces steep regulatory barriers. Approval from the incoming Trump administration and European watchdogs is essential, amid US concerns over foreign influence on news outlets like CNN and national security implications for sports rights.
Industry analysts warn a PIF-led takeover could accelerate consolidation, blending Gulf capital with American IP but risking editorial autonomy and creative freedoms. “This isn’t just a sale; it’s a seismic shift in who controls the stories we tell,” one media consultant noted anonymously.
As talks heat up, WBD shareholders eye a windfall, but the outcome remains fluid, with a Christmas deadline looming for any binding agreement.
