FCC Approves Foreign Ownership in Merged Paramount-Warner Bros.
The Federal Communications Commission (FCC) has approved the inclusion of foreign investors from Middle Eastern royal families as substantial stakeholders in a merged Paramount-Warner Bros. Discovery entity led by David Ellison's Paramount Skydance. These sovereign wealth funds, including those from Saudi Arabia, Qatar, and Abu Dhabi, are expected to hold nearly 50% equity indirectly through this deal. The approval allows these foreign investors to potentially increase their stake in the future as more capital may be needed for operations after a highly leveraged merger closes. The FCC ruled that allowing such ownership would serve the public interest, noting that control of Paramount will remain with the Ellison family and that foreign stakeholders won't influence content decisions or access sensitive data. Critics, including Democratic FCC commissioner Anna M. Gomez, have raised concerns about potential foreign influence over major U.S. media outlets like CNN and CBS. The decision was made by the Media Bureau under Trump appointee Brendan Carr without a full commission vote, despite calls for additional safeguards from groups such as Free Press.
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Topics: M&A media ownership_regulation