FCC lets Paramount sell 49.5% equity stake to Saudi Arabia, UAE, and Qatar

Key Points:

• The FCC approved Paramount Skydance’s plan to sell up to 49.5% indirect equity stakes to sovereign wealth funds from Saudi Arabia, the UAE, and Qatar, waiving the usual 25% foreign ownership limit for broadcast licensees.
• Paramount, owner of CBS and pending acquirer of Warner Bros. Discovery in a $111 billion deal, will have foreign investors hold non-voting Class B shares, while the Ellison family retains 100% of voting Class A shares, aiming to prevent foreign editorial influence.
• FCC Commissioner Anna Gomez and Senate Democrats expressed strong concerns about foreign influence by authoritarian governments with poor press freedom records, criticizing the approval process for lacking transparency and a full commission vote.
• The FCC ruled that the foreign investments do not confer control or influence over Paramount’s editorial decisions, citing commitments to prevent interference and the economic benefits of foreign investment in U.S. media companies.
• The Paramount-Warner merger faces legal challenges from 12 states alleging antitrust violations, with a federal judge halting the deal pending litigation, while Paramount threatens to leave California if the merger is blocked.