THIS MORNING: War leaves agreements in limbo as Gulf investors weigh risk

Good morning, ladies and gentlemen. It’s a relatively slow Monday morning, with the exception of Dar Al Balad looking to test the waters and market appetite with its small-cap IPO. The company’s books are now opening, defying the prevailing logic that the 2Q window for new listings in regional markets is effectively closed.

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Watch this space

M&A WATCH — Paramount-Skydance takeover of Warner Bros. moves forward: Warner Bros. Discovery shareholders greenlit the company’s USD 110 bn merger with Paramount-Skydance last week, according to a statement. The shareholder approval did not extend to the executive pay structures that could see Warner Bros. CEO David Zaslav land USD 887 mn when the agreement closes.

IN CONTEXT- The merger was reportedly backed by some USD 24 bn in commitments from the Public Investment Fund and other GCC sovereign wealth funds that are anchoring the capital-intensive takeover. However, the pen hasn’t been put to paper yet.

Data point

USD 106 bn — that’s the value of Gulf-backed transactions across North America and Europe currently in limbo since the war forced investors in the region to revisit their strategies, according to Pitchbook data cited by the Financial Times.

Rising defense spending and energy disruption risks are pushing governments to prioritize “domestic investment, defense industrial capacity, and food security” over assets like venture capital or entertainment, says Ana Nacvalovaite, SWFs specialist at Oxford University’s Kellogg College.

Still, the mega-M&A is not dead: High-profile transactions like the USD 110 bn Paramount-Skydance and the USD 55 bn Electronic Arts takeovers reportedly remain on track.

IN CONTEXT- Six of the world’s 10 heftiest SWFs are based in our part of the world, controlling nearly USD 5 tn in assets. Even marginal shifts in their allocation can filter through to global M&A pipelines that depend on their anchor investments.

Sports

The WWE Night of Champions will take place in Riyadh on 27 June as planned, Wrestling Inc reports, citing a company announcement. The show continues WWE’s partnership with the Kingdom after the Night of Champions 2025 in Riyadh.

ALSO- Riyadh will host WrestleMania 43 in 2027 as part of the Riyadh Season, marking the first time WWE’s biggest show will be held outside North America. The event will be organized in collaboration with the General Entertainment Authority.

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The big story abroad

While the latest developments from yesterday’s shooting at the White House correspondents’ dinner are dominating the front pages, a few other stories have caught our attention:

Our daily update on ceasefire negotiations: After the latest round of discussions between the US and Iran fell through, US President Donald Trump appears to have left the ball in Tehran’s court, saying Iran can reach out by phone to continue negotiations.

And in markets: Bullish sentiment over AI appears to have pushed equities to record highs. Since the outbreak of the regional war, 82 stocks, most of which are tied to the AI boom, have posted gains above 10%, which the Wall Street Journal attributed to investor confidence in data-center construction and infrastructure providers like Nvidia.

And speaking of AI: According to new reports, AI may end up costing businesses more than human labor, with computing costs exceeding salaries in some cases. Firms like Uber are seeing AI costs skyrocket, with some estimates placing global IT spending at USD 6.3 tn in 2026 — a 13% y-o-y jump.

In the (shrinking?) world of human achievement, Kenyan athlete Sabastian Sawe madehistory yesterday as the first runner to ever finish a competitive marathon in under two hours.

Circle your calendar

The Esports Nations Cup is being held in Riyadh from 2-29 November. The tournament — considered the largest national-team event in the sector’s history — will see 32 nations compete in League of Legends for a USD 1.5 bn prize, alongside other games.