What Was Brian Roberts Doing in Saudi Arabia?
The Comcast C.E.O., who’s at least nominally in the WBD hunt, was conspicuously absent last week when Hollywood’s elite feted David Zaslav. Was he searching for a deep-pocketed backer?
hose in attendance at the Simon Wiesenthal Center’s big dinner honoring Warner Bros. Discovery C.E.O. David Zaslav on October 30 may have noticed a semi-conspicuous absence: Brian Roberts, the Comcast C.E.O. who has known Zaslav for years and
kinda maybe wants to buy his company. Turns out Roberts was unable to attend that event in Los Angeles because he was in Saudi Arabia with the Public Investment Fund, the kingdom’s highly capitalized (and often courted) investment vehicle. It was a curious sojourn, given that Zaslav would like to generate a bidding war for Warner Discovery—a bidding war that, he very much hopes, will include Comcast and some deep-pocketed backer. Could that backer be Saudi?
Let’s not get ahead of ourselves. Roberts was ostensibly in Riyadh for the PIF’s Future Investment Initiative, the annual gathering launched by Crown Prince
Mohammed bin Salman for invited C.E.O.s, investors, and others that want to “translate debate into action across capital, technology, and policy.” The leaders of several other big U.S. companies were also there. This is one of those conferences that executives who want to play on a global stage think they should attend these days.
But two sources told me Roberts took at least one meeting with PIF officials during his time there, though it’s not clear what they discussed. Roberts also visited Qiddiya, the under-construction “megacity of play” in Riyadh where Six Flags and
Dragon Ball Z theme parks are in the works. Roberts and NBCUniversal parks chief
Mark Woodbury are said to be considering whether to build or operate a Universal theme park in Qiddiya, hence the personal visit. (A Comcast rep confirmed Roberts attended the PIF event and visited Qiddiya but declined to comment on any specifics or conversations. A source emphasized that Comcast has not decided whether to invest in Qiddiya.)
It’s all sensitive, of course, because Comcast is trying to figure out how to get into the Warner Discovery sweepstakes for an asset that, if bought outright, could go for $60 billion or more. Paramount, backed by the wealth of the
Ellison family, has already been rejected after bidding as much as $24 a share, and my colleague
Kim Masters reported last week that the Ellisons and their backer and board member
Gerry Cardinale made their own trek to the Middle East last week, though it’s not clear with whom they met or why. (I’m told they did not meet with the Saudis.) Depending on what kind of transaction Roberts proposes, if any, Comcast, which is currently worth less than $100 billion, would likely need a partner.
It’s also sensitive, of course, because Comcast owns news channels, and even after its planned spinoff of CNBC and MSNBC—sorry, MS NOW—it will still operate NBC News. So any business alliance with the journalist-dismembering Saudis, whether it be a theme park or a PIF-backed bid for all or part of Warner Discovery, might not go over well with, say,
Rachel Maddow or
Savannah Guthrie. To say nothing of the CNN staff if the network is part of a WBD-Comcast tie-up. Roberts, who now has Goldman Sachs and Morgan Stanley advising on the Warners situation, is
said to have met with Zaslav last week. He would already face a pretty steep uphill battle against Trumpy regulators in the U.S. That path likely wouldn’t be easier with Saudis involved.