Key facts
- The FCC approved foreign investment in the Paramount-Skydance acquisition of Warner Bros. Discovery.
- Limits were placed on foreign investment, preventing voting stock and influence over content and management.
- Senators raised concerns about foreign governments potentially influencing CNN, CBS News, and local Paramount-owned stations.
- Paramount sought approval for sovereign wealth funds of Saudi Arabia, UAE, and Qatar to own significant stakes.
- The proposed deal would allow foreign investors to own up to 100% of Paramount's equity in some cases.
The Federal Communications Commission (FCC) has approved a request from Paramount Skydance for foreign investments to back its acquisition of Warner Bros. Discovery. The commission's media bureau released a decision on Thursday that places limits on the extent of foreign investment in the deal. According to the decision, foreign investors will not be allowed to hold voting stock and will have no influence, direction, or control over Paramount’s content decisions, company management, or access to non-public data on U.S. citizens.
This approval comes despite concerns raised by a group of U.S. senators, including Senator Maria Cantwell, who had written to FCC Chairman Brendan Carr. The senators expressed serious concerns about the potential for foreign governments hostile to a free press to exert influence over major U.S. media outlets such as CNN, CBS News, and 60 Minutes, as well as local Paramount-owned television stations. They noted that Paramount's financing scheme would allow sovereign wealth funds from Saudi Arabia, the United Arab Emirates (UAE), and Qatar to own significant stakes, potentially up to 100% of Paramount's equity in some instances, which exceeds the 25% cap set by Congress for foreign ownership of American TV and radio stations without prior FCC approval.
Additional senators, including Cory Booker, Elizabeth Warren, and Adam Schiff, also urged the FCC to block the merger until a national security review of the foreign investors was completed. They highlighted that the proposed deal would place 49.5% of the equity in the parent company of CBS, CNN, and 28 broadcast television stations into the hands of three foreign governments, questioning whether this serves the American public interest.