Paramount, In Request For FCC Funding OK, Notes It Will Be 49.5% Foreign-Owned After WBD Merger
Deadline • • business
Key Points:
- Paramount will be 49.5% owned by non-U.S. investors after merging with Warner Bros. Discovery, with 24% held by three Middle East investment funds, according to an FCC filing seeking approval.
- The company stated that this foreign investment will provide greater access to capital, helping the combined entity compete more effectively in television broadcast and video programming markets.
- Paramount emphasized that non-U.S. investors will have no voting control and will act as passive backers, although concerns remain due to Saudi and Persian Gulf involvement, especially since CBS News and CNN will be part of the merged company.
- The $110 billion merger is expected to close by September after clearing most regulatory hurdles, while some state attorneys general continue to explore legal challenges amid recent antitrust actions in the industry.
- Netflix had highlighted the foreign ownership issue during its unsuccessful bid for Paramount’s studios and streaming division, which was overtaken by Paramount’s full-company acquisition offer.
