Paramount Skydance Investment Rumor Sparks Stock Surge

Paramount Skydance has dismissed rumors of forming an investment consortium with wealth funds from Saudi Arabia, Qatar, and Abu Dhabi to bid for Warner Bros Discovery. Warner Bros shares rose as the company considers various options amid declines in its television business.

On Tuesday, Paramount Skydance refuted claims made by Variety that it was collaborating with sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi in a $71 billion bid for Warner Bros Discovery. The reports were deemed 'categorically inaccurate' by the company.

Following the rumors, shares of Warner Bros Discovery surged 5.5%, while Paramount experienced a 2% rise. Warner Bros Discovery, known for its iconic media brands like DC Films and HBO, is wrestling with financial challenges, prompting discussions about potential business restructuring.

The Variety report had suggested that the initiative was largely supported by the Ellison family and involved collaborations with major wealth funds. Despite speculative interest from companies like Comcast and Netflix, the deadline for initial bids is set for November 20.

(With inputs from agencies.)