Tencent Eyes Paramount Deal
Tencent plans to invest hundreds of millions in Paramount's acquisition of Warner Bros., signaling fresh funding for the media merger.
Tencent previously committed $1 billion to David Ellison's bid for Warner Bros. Discovery (WBD) but withdrew due to potential U.S. regulatory concerns over national security. Now that Netflix is out of the picture, Tencent is considering investing several hundred million dollars as a passive financial investor. The Paramount-WBD deal is valued at $110 billion, with Paramount paying $31 per share for 100% of WBD. The transaction is supported by a $47 billion equity package from the Ellison family and RedBird Capital Partners. It also includes $54 billion in debt commitments from Bank of America, Citigroup, and Apollo. Three Middle Eastern sovereign wealth funds have committed $24 billion in financing for Paramount's WBD bids, prompting some U.S. lawmakers to call for a review by the Committee on Foreign Investment in the United States. The potential merger has raised concerns about consolidating media power and potential job losses. The deal is expected to close in Q3 2026, pending regulatory and shareholder approvals. If the deal hasn't closed by September 30, 2026, WBD shareholders will receive a $0.25 per share "ticking fee" each quarter until closing. Paramount has also agreed to a $7 billion termination fee if the deal fails due to regulatory issues.
