Tencent plans multi-million dollar investment in $110bn Paramount–Warner Bros. deal

Tencent is reportedly considering investing hundreds of millions of dollars in the massive takeover of Warner Bros. Discovery by Paramount Global and David Ellison’s Skydance Media.

People familiar with the discussions say the Chinese tech giant would participate purely as a financial backer if it proceeds with the investment. The transaction, valued at about $110 billion (roughly R1.9 trillion), would rank among the largest deals in the global entertainment industry.

Tencent previously indicated interest in supporting the acquisition. When Paramount first proposed buying Warner Bros. in December, the plan included a $1 billion equity contribution from Tencent.

However, the involvement of a Chinese investor raised concerns for Warner Bros., particularly around possible scrutiny from United States regulators on national security grounds. Those concerns ultimately led to the removal of Tencent’s commitment from the initial proposal.

Naspers’ connection to the deal

Although Tencent is based in China, the company has strong links to South Africa through Naspers, one of the country’s largest technology investors. Naspers holds roughly 24% of Tencent through its international investment arm Prosus.

Tencent’s founder and chief executive, Pony Ma, is also a significant shareholder, owning about 8% of the company. Other major investors include global asset managers The Vanguard Group and BlackRock, which each hold roughly 3% stakes.

The remaining shares are held by a mix of institutional and retail investors across global markets.

Warner Bros. Discovery confirms higher takeover bid from Paramount

While Tencent is reportedly weighing participation in the deal, sources say the company could still decide against making an investment. The takeover itself is also expected to take time before it is fully completed.

Funding behind the $110 billion acquisition

The acquisition of Warner Bros. Discovery is largely being financed through a mix of equity and debt. Around $47 billion in equity funding is being provided by the Ellison family and investment firm RedBird Capital Partners.

In addition, lenders including Bank of America, Citigroup and Apollo Global Management have pledged about $54 billion in debt financing to support the transaction.

Paramount shareholders may also get the opportunity to buy up to $3.25 billion in additional Class B shares through a rights offering tied to the deal.

Tencent already has an existing relationship with Skydance and Paramount. The company previously co-financed major films such as Terminator: Dark Fate and has assisted with marketing and distribution efforts following its earlier strategic investment in Skydance.

As the deal progresses, additional financial partners could still join the consortium backing the acquisition when the transaction reaches its closing stage.