FCC Approves Foreign Funding for Paramount Warner Bros Merger

The Federal Communications Commission approved a waiver allowing sovereign wealth funds from Saudi Arabia, Qatar, and the United Arab Emirates to provide approximately $24 billion in financing for Paramount's acquisition of Warner Bros. Discovery. The ruling waives the statutory 25% cap on foreign equity ownership, permitting these funds to hold indirect equity interests. While the FCC indicated foreign funds could hold up to 85% of equity, Paramount stated that sovereign wealth funds will collectively hold 38.5% post-close, including a 15.1% stake for the Public Investment Fund of Saudi Arabia.

To protect national security and editorial independence at CBS and CNN, the FCC barred foreign investors from holding voting stock, governance rights, or accessing nonpublic U.S. data. The Ellison family and RedBird Capital Partners will retain 100% of voting shares. FCC Media Bureau video division chief David Brown stated the move is "in the public interest" to strengthen the broadcast industry.

Democratic FCC Commissioner Anna Gomez criticized the decision, arguing that the investment allows repressive governments to secure influence over American media. The merger, valued between $81 billion and $111 billion including debt, remains on hold pending a March trial. The deal faces antitrust lawsuits from the Writers Guild of America and a coalition of 12 U.S. states led by California. Paramount faces a $7 million daily fee if the transaction does not close by September 30.