On Monday, Ross Gerber raised red flags over a reported $24 billion Gulf-backed investment fueling the proposed merger between Paramount Skydance Corp. (NASDAQ:PSKY) and Warner Bros. Discovery Inc. (NASDAQ:WBD).
Gerber Calls Out Hollywood Investment Cycle
Gerber took to X, warning that "in every generation" Hollywood attracts a new wave of investors who may underestimate the risks of the entertainment business.
His remarks came in response to The Hollywood Reporter’s report that Gulf sovereign wealth funds are backing the massive deal, which could reshape the media landscape.
$24 Billion Gulf Funding Behind $110 Billion Megamerger
The proposed $110 billion tie-up between Paramount and Warner Bros. Discovery is expected to combine major assets, including Paramount's film library and Warner Bros.' portfolio spanning HBO, CNN and global television networks.
According to reports, roughly $24 billion in funding is coming from Middle Eastern investors, led by Saudi Arabia's Public Investment Fund, alongside the Qatar Investment Authority and Abu Dhabi-based funds.
While regulatory filings have not detailed exact contributions, sources indicate Saudi Arabia could account for about half of the total, the report said.
Political Influence And Soft Power Concerns Emerge
Beyond the financial scale, the deal is drawing scrutiny over potential geopolitical implications.
Critics argue such investments could extend influence in U.S. media and politics, framing the move as part of a broader strategy to build soft power and shape narratives globally.
Hollywood Creatives Push Back Against The Deal
Meanwhile, More than 1,000 actors and creatives — including Joaquin Phoenix, Ben Stiller and Kristen Stewart — signed an open letter urging regulators to block the merger.
The group warned the consolidation could undermine competition, weaken independent voices and concentrate too much control in the hands of a few powerful stakeholders.
Price Action: Paramount Skydance closed at $10.73 on Monday, up 1.04% during the regular session and slipped 0.47% to $10.68 in after-hours trading, according to Benzinga Pro.
PSKY sits in the 87th percentile for Value on Benzinga Edge, indicating weak performance across short, medium and long-term timeframes.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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