Full Breakdown
FCC Waiver Allows Near-Half Foreign Equity in Paramount-Warner Merger
By Drooid · · How we work
Core Event
On September 17, 2026, the Federal Communications Commission’s Media Bureau issued a declaratory ruling that waives the statutory 25 percent cap on foreign equity ownership for Paramount Skydance Corp. (Paramount). The waiver permits sovereign-wealth funds from Saudi Arabia, Qatar and the United Arab Emirates to hold up to 49.5 percent of Paramount’s non-voting Class B shares once the proposed acquisition of Warner Bros. Discovery closes. The FCC limited each foreign investor to a maximum of 20 percent of the equity and barred any voting rights, governance authority, editorial influence, or access to non-public U.S. data.
Background & Context
Paramount owns 28 U.S. broadcast-station licenses, triggering the foreign-ownership restriction in the Communications Act. The company’s $110-$111 billion bid for Warner Bros. Discovery would bring together CBS, CNN, HBO, Paramount+, and a slate of major film studios. The merger is stalled by an antitrust lawsuit filed by California and eleven other states; a trial is slated for next March. A separate challenge from the Writers Guild of America also remains pending.
Data & Statistics
- Foreign equity: 49.5 percent of non-voting Class B shares (up to 20 percent per investor).
- Investment amount: Approximately $24 billion from the three sovereign funds.
- Deal value: Roughly $110 billion (including debt).
- Broadcast assets: Paramount controls 28 TV stations, CBS, and related news operations.
- Legal timeline: Antitrust suit filed July 2026; trial scheduled for March 2027.
- Equity split after deal (as reported): Ellison family and RedBird Capital Partners retain 100 percent of voting shares and the largest equity stake; foreign investors hold the remainder of non-voting equity.
Official Statements & Responses
The bureau also required Paramount to seek additional FCC approval before any change to voting or governance rights.
FCC Chairman Brendan Carr, a Trump-appointed commissioner, has publicly supported the merger, noting that the foreign capital will bolster news-gathering capabilities without compromising control.
Conflicting Reports & Gaps
Sources differ on the proportion of the combined company that foreign investors will ultimately own. Variety and several FCC filings cite 49.5 percent of non-voting Class B shares, while other outlets (e.g., Commondreams) describe the foreign stake as 38.5 percent of total equity after the merger. Both figures refer to the same set of sovereign-wealth funds but reflect different accounting bases (Class B versus overall equity). No source provides a definitive breakdown of post-merger voting versus economic interest beyond the statements above.
Verbatim Quotes
- “The FCC has never approved a significant ownership stake of an American broadcaster by a sovereign wealth fund — that is, an investment entity controlled by a foreign government,” — Sen. Maria Cantwell — Sen. Maria Cantwell