FCC approves Paramount's sale of nearly half of its equity to Saudi, UAE and Qatar funds
The Federal Communications Commission granted Paramount Skydance a waiver to allow sovereign-wealth funds from Saudi Arabia, the United Arab Emirates and Qatar to acquire up to 49.5% non-voting shares, despite objections over foreign influence.
The Federal Communications Commission issued a declaratory ruling permitting Paramount Skydance to sell up to 49.5% of its equity to sovereign-wealth funds of Saudi Arabia, the United Arab Emirates and Qatar. Under U.S. law, broadcast license holders must obtain FCC approval for foreign ownership exceeding 25%, and Paramount sought a waiver citing that the new investors would receive only non-voting Class B shares.
Paramount, which owns the CBS television network and 28 local stations, is financing its pending $111 billion acquisition of Warner Bros. Discovery with the foreign investment. The Saudi Public Investment Fund is slated to contribute $10 billion, while Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. would each provide $7 billion, according to reports.
FCC Commissioner Anna Gómez, the commission’s sole Democrat, warned that the transaction could give “some of the most repressive governments in the world” a degree of influence over a major U.S. media company. She called for a full commission vote, but the decision was made at the staff level without a formal vote.
The FCC’s Media Bureau concluded that the non-voting nature of the shares eliminates any practical editorial or operational control, stating the order “finds the argument unconvincing” that foreign investors could wield influence. The agency required Paramount to monitor foreign ownership, prohibit any direction of content decisions, and seek additional approval before altering voting rights or exceeding the approved ownership level.
Senate Democrats have expressed concern that the governments behind the investment suppress press freedom domestically and have made gifts to entities linked to the U.S. president. Nonetheless, FCC Chairman Brendan Carr previously indicated the deal should proceed quickly.
The merger also faces antitrust challenges; a coalition of 12 states has sued to block the Warner Bros. Discovery acquisition, and a federal judge has halted the deal pending further litigation.
Free Press, a media-advocacy group, warned that the combined company would inherit nearly $80 billion in debt, potentially forcing cuts to Paramount’s broadcast operations and harming the public interest.