Gulf states like Saudi Arabia, Qatar and the United Arab Emirates are considering a revision of global investment plans and pledges, which will impact economies the world over. The impetus for this is the Iranian assaults on its Gulf Arab neighbors, which have placed a strain on national budgets and interfered with local infrastructure expansion projects. For example, in March, Wood Mackenzie reported that the Iranian attacks on the Qatari Ras Laffan Industrial City caused damage and fires extensive enough to halt liquid natural gas, or LNG, production at the site for at least two months and likely delay the completion of the North Field East expansion project, intended to add 32 million tons of LNG a year.
Also in March, Reuters reported that up to $2 trillion of Gulf states’ investments in the U.S. were under review to offset losses from the war, with longer-term commitments not tied to specific contracts more likely to be trimmed back versus deals already subject to formal contracts. On April 15, Saudi Arabia’s Public Investment Fund Governor Yasir Al-Rumayyan said, “Local investment should be 80% and we aim for international investment to be 20%,” down from a high of 30%, according to a commentary on Reuters. Still, PIF’s strategy indicates that it will continue to invest overseas in companies that impact an ever-shifting global economy.
How the Gulf funds drive Paramount-Warner Bros. deal
One deal they’re apparently not backing out of is the $110 billion Paramount Skydance acquisition of Warner Bros. Discovery, according to MSN. Warner shareholders vote on April 23 and are widely expected to approve the deal, as the WBD board recommended the merger, and Glass Lewis, a major independent proxy advisory firm, also supported it.
Both companies still say they expect a third-quarter close. Had the three Gulf funds involved tapped out, that would be a different story.
Three Gulf investors joined the Paramount bid last year – Saudi Arabia’s Public Investment Trust, the Qatar Investment Authority, and the UAE’s L’imad Holding Company. All three are sovereign wealth funds run by the states and, as was reported at the time in a commentary by Reuters, the three Gulf investors “waived all governance rights, including board seats and voting power,” while Yahoo Finance noted, “foreign investors are not expected to hold any governance or board seats.”
It is unclear whether Netflix would have come back to the table had these Gulf investors dropped out. A report from PBS indicated that almost no one in Hollywood wanted Netflix to buy Warner Bros., viewing it as a Big Tech acquisition that would have further eroded theatrical releases. In contrast, Paramount’s focus remains on expanding movie releases to 15 or more annually, up from around eight, according to Deadline. Adam Aron, CEO of AMC, loves it, as published in Variety, believing this will provide higher quality blockbuster films for theater chains, making them more money in the process.
Paramount is both a gateway to old Hollywood and the new, because it produces movies and is also in the streaming business. The company still needs to bring subscribers to Paramount+. Their subscriber growth since its 2021 launch reached almost 79 million worldwide as of the end of 2025, according to Yahoo Finance.
Paramount doesn’t have “Hail Mary Project” or “Disclosure Day”-style summer movie vibes. But last summer, they had Tom Cruise’s “Mission Impossible: The Final Reckoning.” Upcoming summer releases include “Scary Movie,” a horror movie spoof, and “Jackass: Best and Last,” films that are two of the most anticipated summer ’26 movies, according to Rotten Tomatoes. Family franchise “Paw Patrol: The Dino Movie” also comes out in August. These can be blockbusters for Paramount.
Paramount is the distributor behind “Billie Eilish — Hit Me Hard and Soft: The Tour Live in 3D,” which comes out on May 8. If successful, shows like this are low-hanging fruit for Paramount to distribute globally. We may see more of this non-scripted content in movie theaters in the future.
In an aerial view, the Warner Bros. logo is displayed on the water tower at Warner Bros. Studio on February 27, 2026 in Burbank, California. Warner Bros. Discovery has agreed to be acquired by Paramount Skydance in a deal reportedly worth $110 billion.
Paramount is trying to woo people to Paramount+ with “The Legend of Aang: The Last Airbender,” a hit among anime fans that will appear in October. With AI expansion, the media environment is precarious. According to Variety, Disney announced layoffs of 1,000 employees this month. They cited declining TV revenue, including at Disney+.
Streaming led to a content bubble, and media and entertainment companies will have to restructure. But I doubt this will weigh heavily on shareholders’ minds next week. They are in this for the long term.
Opinion: Warner Bros. board sees the light in sale to Paramount
Variety reported that Paramount Skydance chairman and CEO David Ellison went to CinemaCon recently, reiterating promises to release 30 movies between Paramount and Warner Bros. annually. Warner released 11 movies in 2025, with 14 planned for this year.
For the Gulf financial powers, Paramount is a go, which is impressive given the market stress Hollywood is under as the culture shifts away from movie-going. Maybe that can change. Gulf investors look for content with global appeal; big screen or small.
If the war-ravaged Gulf states still see value in Paramount, Warner Bros. shareholders definitely will, and they’ll agree to the acquisition handily. U.S. regulators will back it. If Polymarket odds betting is your thing, this deal is in the bag.
Kenneth Rapoza is a former staff reporter for the Wall Street Journal in Brazil and covered the BRICS for Forbes as a senior contributor from 2011 to 2023.
This article originally appeared on NorthJersey.com: Gulf States Paramount-Warner Brothers investment | Opinion