Tencent is considering a fresh investment of several hundred million dollars in Paramount Skydance's $110bn acquisition of Warner Bros. Discovery, sources familiar with the matter told Bloomberg. The Chinese technology group would participate as a passive financial investor if it proceeds with the investment.

Tencent previously committed $1bn to the deal but withdrew after Warner Bros. raised concerns that Chinese participation could create regulatory challenges in the US. The takeover, led by David Ellison, is supported by a $47bn equity package backed by the Ellison family and RedBird Capital Partners.

The transaction also includes $54bn of debt commitments arranged by major financial institutions. Tencent already holds a minority non-voting stake in Paramount and has collaborated with Skydance on several productions since making a strategic investment in the studio in 2018, supporting distribution and marketing for their films.