FCC waives its own foreign ownership rule

The FCC allowed Gulf state wealth funds from Saudi Arabia, Qatar, and Abu Dhabi to own 49.5 percent of Paramount-Warner Bros., despite a rule limiting foreign entities to 25 percent ownership.

“Three Gulf states will own nearly half of Paramount-Warner Bros. if this merger goes through.”

No voting rights, but massive influence

The FCC claims the Gulf funds won't control editorial decisions because their stock lacks voting rights. Critics argue owning half a media giant grants influence regardless of formal voting power.

“will not be able to wield any influence, let alone control, over decisions involving the Licensees.”

The petition asked for 100 percent foreign ownership

Paramount's original request sought permission for foreign entities to own up to 100 percent of the combined company. The FCC granted this but required a separate request for voting shares.

Democrats and advocates strongly oppose the move

Free Press and Democratic FCC member Anna Gomez warned that letting repressive governments indirectly control a major U.S. media company threatens editorial independence and could enable propaganda.

“Control over for-profit, commercial domestic news media by any government is an extraordinary situation that would surely strike most Americans as unseemly.”

FCC's credibility questioned on foreign influence

The FCC has aggressively targeted American broadcasters and journalists under Trump but shows leniency toward foreign wealth funds, raising questions about its priorities and consistency.

Merger still faces antitrust challenge

California and 11 other states filed an antitrust suit against the Paramount-Warner Bros. merger. A trial is scheduled to begin in March 2027.