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FCC Approves 49.5% Foreign Ownership of Paramount-Warner Bros.
variety.com • • business
Key Points:
- The FCC approved Paramount's petition allowing foreign entities to hold up to 49.5% equity in the company following its merger with Warner Bros. Discovery, despite concerns over foreign ownership limits for broadcasters.
- The foreign investment comes from sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi, which will hold non-voting shares, alleviating FCC concerns about control and influence.
- The merger is currently on hold due to an antitrust lawsuit filed by California and other states, with a trial scheduled for March next year.
- Critics, including media advocacy groups and some Democratic senators, expressed strong opposition, citing risks of foreign government influence over American media and questioning the FCC's precedent in approving such ownership.
- Paramount emphasized that voting control remains with the Ellison family and RedBird Capital Partners, highlighting the merger's potential to strengthen the company against competition from big tech firms.
