Paramount Skydance Denies Its Warner Bros. Bid Is Fueled by Arab Oil Money

Just when you thought the corporate dating game couldn't get any messier, Skydance has stepped in to clear the air, or at least, muddy the waters differently.

If you have been following the absolute circus that is the potential sale of Warner Bros. Discovery, you likely saw the reports that Paramount Skydance was teaming up with some very deep pockets in the Middle East. Variety reported that the company was forming a consortium with sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi to fund a staggering $71 billion bid. Well, Paramount Skydance has come out swinging to say that is simply not happening.

Categorically Inaccurate

In a statement that screams "please stop speculating before the SEC calls us," a representative for Paramount Skydance called the report "categorically inaccurate." They emphasized that this is a confidential process which they intend to respect. It is a firm denial, but in the world of mega-mergers, a denial today can easily turn into a "strategic pivot" tomorrow.

The rumor mill had suggested that the Ellison family, who control Paramount Skydance, were looking for partners to help swallow the massive entity that is WBD. Considering the price tag involves tens of billions of dollars, you can see why people assumed they might need some external help. But for now, Skydance insists they are not shopping for riyals or dinars to make this deal happen.

The Gaming Stakes

This isn't just about who owns HBO or who gets to cancel the next Batgirl movie. A takeover of this magnitude involves the entire Warner Bros. portfolio, which includes their massive gaming division. We are talking about studios like Rocksteady, NetherRealm, and Monolith.

If this deal goes through, regardless of who funds it, the new owners would hold the keys to Mortal Kombat, the Arkham series, and whatever Hogwarts Legacy sequel is inevitably being printed. For gamers, the fear is always the same. New corporate overlords usually mean restructuring, and restructuring usually means cancellations.

The Competition Is Watching

While Skydance is busy issuing denials, the clock is ticking. The board of Warner Bros. Discovery has set a November 20 deadline for initial bids. They are not the only sharks in the water, either. Comcast and Netflix are reportedly sniffing around, which paints a terrifying picture of media consolidation no matter who wins.

Ironically, while Skydance denies Middle Eastern involvement, Comcast co-CEO Brian Roberts was actually in Riyadh late last month. He was attending a conference hosted by the Public Investment Fund and checking out a site for a potential Universal theme park. Whether he was also asking for a few billion dollars to buy Bugs Bunny is unknown, but the timing is certainly interesting.

Credit to the report from Variety.

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