FCC approves foreign media stake

The FCC cleared Paramount to sell 49.5% equity to sovereign wealth funds from Saudi Arabia, UAE, and Qatar. The investment totals $24 billion, with Saudi Arabia contributing $10 billion.

Why Paramount needed FCC approval

US law requires FCC approval when foreign ownership of broadcast station licensees exceeds 25%. Paramount owns 28 CBS stations, so it needed a waiver to accept the Middle Eastern investment.

The bigger merger picture

Paramount is buying Warner Bros. Discovery for $111 billion, a deal partially financed by the foreign investment. The merger would combine two major studios, merge streaming services, and give Paramount ownership of CNN.

Democrat commissioner objects

FCC Commissioner Anna Gomez, the only Democrat on the commission, warned that the investment lets repressive governments influence what gets said and made in American media.

“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 what gets made.”

Voting shares stay with Ellison family

The foreign investors will hold non-voting Class B shares while the Ellison family and RedBird Capital Partners retain 100% of voting Class A shares. The FCC said this structure prevents foreign influence over editorial decisions.

FCC rejected influence concerns

The FCC dismissed arguments that non-voting shareholders could wield practical influence, saying stock ownership without voting rights cannot control company decisions. Critics say this reasoning ignores financial leverage.

“We find this argument unconvincing. The Proposed Investment is not a loan, which must be repaid, but a purchase of stock that has no voting rights.”

Senate Democrats warned about corruption

Senate Democrats wrote to FCC Chair Brendan Carr that the foreign governments systematically suppress press freedom and have made investments to entities controlled by Trump and his family, raising corruption concerns.

No public vote on the decision

The FCC approved the deal through a staff-level Media Bureau decision with no full commission vote. Commissioner Gomez called for a public vote on this novel issue but was overruled.

“I called for this new and novel issue to go to a full commission vote given what's at stake. Instead, the FCC snuck this ruling out as a staff-level decision, with no public vote and no accountability.”

Merger faces antitrust lawsuit

A federal judge ruled the Paramount-Warner Bros. merger likely violates antitrust laws and halted the deal. Twelve states led by California are suing to block it, while Paramount threatened to leave California.

Paramount's history with FCC

The FCC approved Paramount's $8 billion Skydance purchase last year after the company agreed to install an ombudsman at CBS. Paramount also settled a $16 million lawsuit with Trump over a CBS interview edit.

FCC sets compliance conditions

Paramount must monitor foreign ownership, prevent foreign investors from influencing content decisions, and seek FCC approval before changing voting or governance rights. Violations could trigger additional regulatory action.