Key facts
- The FCC approved Paramount's plan to sell equity stakes to sovereign wealth funds from Saudi Arabia, UAE, and Qatar.
- Paramount's indirect foreign ownership will reach 49.5% after the investments.
- The FCC waived the foreign ownership limit, stating the investment is in the public interest.
- Foreign investors will hold non-voting Class B shares, while the Ellison family retains Class A voting shares.
- The FCC's Media Bureau issued the approval as a staff-level decision without a public vote.
- The proposed investment is part of Paramount's planned $111 billion acquisition of Warner Bros. Discovery.
The Federal Communications Commission (FCC) has approved Paramount's petition to sell significant equity stakes to the sovereign wealth funds of Saudi Arabia, the United Arab Emirates, and Qatar, allowing for indirect foreign ownership of up to 49.5% in the media company. This decision comes despite concerns raised by FCC Commissioner Anna Gomez, the sole Democrat on the commission, who argued that such a large investment in a major US media company could secure influence over its content and operations. The FCC, however, found Paramount's assurances that foreign investors would hold only non-voting shares and would not influence editorial decision-making to be convincing, citing the public interest and the benefits of foreign investment in strengthening the US economy and fostering innovation. The approval is a key step in Paramount's proposed $111 billion acquisition of Warner Bros. Discovery, which is also facing a lawsuit from several US states aiming to block the merger on antitrust grounds. The foreign investment, totaling $24 billion, is crucial for financing the deal, with Saudi Arabia's Public Investment Fund contributing $10 billion and Qatar Investment Authority and Abu Dhabi's L'imad Holding Co. adding $7 billion each. The FCC's Media Bureau issued the ruling as a staff-level decision, bypassing a public commission vote, which Commissioner Gomez criticized as lacking accountability.