FCC Clears Path for Foreign Investment in Paramount-WBD Deal Amid Concerns

The FCC approved a request by Paramount Skydance to allow foreign investors in its $110 billion acquisition of Warner Bros Discovery, albeit without voting rights. Concerns arose regarding Middle Eastern investors, with debates around equity and influence over US media content and future governance rights persisting.

The Federal Communications Commission (FCC) has approved a request by Paramount Skydance to permit foreign investment in its $110 billion acquisition of Warner Bros Discovery. However, these investors will not be granted voting stock, alleviating concerns raised by Democratic senators over the influence of Middle Eastern sovereign wealth funds.

The FCC decision, announced by its media bureau, includes waiving the 25% foreign equity cap, allowing individual investors to own up to 20% equity but bars them from exerting control over content or accessing non-public data on US citizens. The ruling followed a review by US national security officials.

The acquisition awaits a trial in March due to a temporary block by a US judge. Once completed, Larry Ellison's family and RedBird Capital Partners will control the largest equity and voting shares. The deal allows Middle Eastern investors to hold significant equity stakes, raising concerns about indirect control over major US media.