<p class="wp-block-paragraph">The Federal Communications Commission (FCC) approved Paramount Skydance’s request for a 49.5% foreign ownership stake in its pending merger with Warner Bros. Discovery on September 18, 2026.</p>
<p class="wp-block-paragraph">This decision allows foreign investors, including sovereign wealth funds from Saudi Arabia, Qatar, and the United Arab Emirates, to collectively own nearly 50% of the combined entity if the merger is finalized.</p>
<p class="wp-block-paragraph">Under Section 310 of the Communications Act, there is a 25% limit on foreign investments in U.S. companies that control broadcast licensees. The FCC can approve foreign ownership above this threshold if it determines that doing so serves the public interest. David Brown, chief of the Video Division for the FCC’s Media Bureau, stated that the public interest would be served by permitting indirect foreign equity ownership of Paramount to exceed the 25% benchmark.</p>
<p class="wp-block-paragraph">The FCC’s ruling indicated that it is also in the public interest to allow up to 100% indirect foreign equity interest in Paramount. The total indirect foreign equity granted by the FCC amounts to 87.5%, with various entities from the three Arab nations each holding more than 5% of equity in the company.</p>
<p class="wp-block-paragraph">Some Democrats in Congress have raised concerns about the implications of Middle Eastern countries holding a significant stake in the merged Paramount-Warner Bros. entity. However, Paramount asserts that the foreign investments do not present any national security risks. A national security review was conducted by the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector prior to the FCC’s order.</p>
<p class="wp-block-paragraph">Paramount emphasized that CEO David Ellison and his father, Oracle co-founder Larry Ellison, will retain substantial ownership and control. A spokesperson for Paramount stated that the Ellison family and RedBird will hold the largest equity stake in the combined company and 100% of the voting shares, ensuring that no other equity participant will have governance rights.</p>
<p class="wp-block-paragraph">Anna Gomez, the sole Democratic commissioner at the FCC, criticized the agency’s approval of Paramount’s foreign ownership stake. She expressed concern that the ruling allows repressive governments to indirectly control a significant portion of a major American media company.</p>
<p class="wp-block-paragraph">Gomez stated, “An investment this large in one of America’s biggest media companies doesn’t just buy equity, it secures influence over what gets said and made.” She called for the issue to be brought to a full Commission vote due to its significance, noting that the FCC made the ruling without public vote or accountability.</p>
<p class="wp-block-paragraph">Currently, Paramount and Warner Bros. are facing an antitrust lawsuit filed by 12 states aiming to block the merger. The plaintiffs have successfully prevented the $111 billion transaction from proceeding, which will remain blocked until the expected trial in March 2027, although a settlement could be reached before then.</p>