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FCC Approves 49.5% Nonvoting Stake in WBD Merger

By Drooid · Sep 18, 2026, 2:41 PM UTC · How we work

Summary

FCC Approves Stake

The Federal Communications Commission approved investors holding 49.5% non-voting equity in the $110 billion Warner Bros. Discovery merger.
Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and L’Imad Holding own 49.5% equity.
Ellison family and RedBird Capital Partners retain 100% voting shares and control.
Conditions bar foreign investors from voting, influencing content, management, or accessing U.S. citizen data.
A judge blocked the merger pending a March 2027 trial by 12 states.

Summary

Paramount Seeks Bond

Paramount will incur a 25-cent-per-share ticking fee starting Oct. 1, costing $650 million each quarter.
Paramount has asked state attorneys general and the Writers Guild to post a $1.9 billion bond.
A court hearing on the bond request is set for Sept. 24.
David Ellison warned he may relocate Paramount’s operations out of California if settlement isn’t reached by Oct. 1.
If the merger collapses, Paramount must pay Warner Bros. Discovery a $7 billion termination fee.

History

Historical Context

The 1996 Telecommunications Act, signed by President Bill Clinton, overhauled U.S. media ownership rules, allowing foreign investors up to 49% of broadcast assets. When the FCC approved the $110 billion Warner Bros. Discovery merger in 2024, Saudi Arabia’s PIF, Qatar’s QIA, and L’Imad Holding supplied 49.5% equity, about $54 billion. Just as the 1996 Act’s liberalization spurred the 2000 DOJ challenge to the AT&T–Time Warner merger, today’s media deals provoke antitrust lawsuits and bond demands. The pattern suggests that future cross-border media consolidations will face stricter FCC oversight, court injunctions, and mandatory financial safeguards to protect U.S. content and data.

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FCC Approves Stake

The Federal Communications Commission approved investors holding 49.5% non-voting equity in the $110 billion Warner Bros. Discovery merger.
Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and L’Imad Holding own 49.5% equity.
Ellison family and RedBird Capital Partners retain 100% voting shares and control.
Conditions bar foreign investors from voting, influencing content, management, or accessing U.S. citizen data.
A judge blocked the merger pending a March 2027 trial by 12 states.

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