FCC approves foreign ownership stake for merged Paramount and Warner Bros Discovery
The Federal Communications Commission approved a petition allowing foreign entities to own 49.5 percent of the combined Paramount and Warner Bros Discovery company.
Voting control remains domestic
The commission determined that foreign investors from Saudi Arabia, Qatar and Abu Dhabi will not hold voting stock. RedBird Capital Partners and the Ellison family will retain 100 percent of the voting shares in the new entity. The FCC stated these funds cannot wield influence over licensee decisions.
Merger faces legal delay
The transaction is currently paused while an antitrust lawsuit proceeds through the court system. California and eleven other states filed this suit in July against the proposed combination. A trial date has been set to begin next March.
Scale aims to fight tech
A company spokesperson noted that the merged firm needs resources to compete with dominant big tech firms. The combined organization plans to invest in innovation and deliver premium content globally. Paramount currently owns twenty-eight television stations requiring this specific regulatory approval.
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