Tencent Is Said to Rejoin Paramount-Warner Deal With Funding

Tencent Holdings Ltd. intends to invest several hundred million dollars in Paramount Skydance Corp.’s acquisition of Warner Bros. Discovery Inc., according to people familiar with the situation.

The Chinese company would be acting as a passive financial investor, the people said, asking not to be identified because the matter is private.

Paramount’s offer for Warner Bros. in December included a $1 billion equity commitment from Tencent, according to a filing at the time, but that was withdrawn after Warner Bros. raised concerns that the Chinese company’s presence could lead to national security challenges with US regulators. After Paramount ...