From The Hollywood Reporter · Winston Cho · · 1m
FCC Approves Middle East Funds in Paramount-Warner Deal
FCC clears Middle East sovereign wealth funds to hold 49.5% stake in Paramount-Warner merger without control.
In brief
FCC clears Middle East sovereign wealth funds to hold 49.5% stake in Paramount-Warner merger without control. Foreign investors will own 49.5% of Paramount-Warner without voting rights or editorial influence. Originally reported by The Hollywood Reporter.
FCC Greenlights Foreign Ownership
The FCC approved Paramount's petition allowing foreign investors to hold over 25% of the studio's ownership.
“When the proposed transaction with Warner Bros. Discovery closes, the Ellison family and RedBird will collectively hold the largest equity stake in the combined company and 100% of the voting shares, with no other equity participant having any governance rights.”
Middle East Funds Back Deal
Saudi Arabia's Public Investment Fund, Qatar Investment Authority, and Abu Dhabi Investment Authority are financing the $111 billion acquisition.
Foreign Ownership Details
The sovereign wealth funds will hold 49.5% of the combined company through non-voting equity investments with no governance rights.
FCC Rejects Editorial Concerns
The FCC dismissed concerns that foreign investors would influence CBS News or CNN editorial decisions.
Conditions for Foreign Investors
Foreign investors cannot access nonpublic U.S. data or hold governance rights, with potential sanctions for violations.
The key point
Foreign investors will own 49.5% of Paramount-Warner without voting rights or editorial influence.
