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8h ago

FCC Clears Large Gulf Sovereign Stakes in Proposed Paramount–Warner Bros. Deal

The agency’s Media Bureau approved roughly 49.5% indirect foreign equity under conditions that bar voting rights and limit investor access while the merger still faces a March 2027 antitrust trial.

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The parent of CBS and other media businesses has proposed buying Warner Bros., which owns the CNN news channel among other assets, for $110 billion, including debt.
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Overview

  • The FCC’s Media Bureau issued a declaratory ruling on Thursday allowing foreign investors to hold about 49.5% of the merged Paramount–Warner Bros. equity provided those stakes are indirect and non‑voting.
  • The approval covers large commitments from Gulf sovereign wealth funds including Saudi Arabia’s PIF, the Qatar Investment Authority and Abu Dhabi interests and includes language permitting future indirect foreign investment with further signoffs.
  • The ruling follows a Team Telecom national‑security review and imposes conditions on data protections and limits on foreign investors’ rights and access to sensitive operations.
  • Paramount says the Ellison family and RedBird will retain 100% of voting shares and governance control, and the FCC required the company to seek new approval if foreign voting interests would change.
  • The merger remains legally blocked by an antitrust suit filed by state attorneys general and the Writers Guild with a trial set for March 2027, and Paramount faces ticking fees and a possible $7 billion termination penalty if the deal fails.