FCC approves Gulf funds to own nearly half of Paramount-Warner Bros
The Federal Communications Commission announced it will allow wealth funds from Saudi Arabia, Qatar and the UAE to hold a 49.5 percent stake in the merged Paramount-Warner Bros company.
Regulatory waiver for foreign ownership
The agency waived its standard rule that limits foreign equity to 25 percent of broadcast media companies. This exception applies specifically to the new entity formed by the merger of Paramount and Warner Bros Discovery. The ruling permits a trio of sovereign wealth funds to proceed with their planned investment.
Voting rights remain restricted
Officials stated that the foreign investors will not be able to control decisions involving the licensees. The stock options granted to these entities do not come with official voting rights. Consequently, the Gulf state funds cannot wield influence over operational or strategic choices.
Investment breakdown by nation
The approved stake consists of contributions from governments in Saudi Arabia, Qatar and Abu Dhabi. These three nations collectively represent the foreign ownership exceeding the previous regulatory threshold. The merger faces no other stated regulatory hurdles regarding this specific equity structure.
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