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FCC approves foreign ownership stake for Paramount-Warner merger
The Federal Communications Commission (FCC) has approved Paramount's request to allow indirect foreign equity ownership to exceed the 25% statutory threshold. This decision facilitates the proposed $111 billion merger between Paramount Skydance and Warner Bros. Discovery, which is partially funded by $24 billion from sovereign wealth funds in Saudi Arabia, Qatar, and the United Arab Emirates.
Under the approved structure, foreign investors will hold non-voting shares, ensuring that 100% of voting control remains with the Ellison family and RedBird Capital Partners. The approved stakes include 15.1% from Saudi Arabia's Public Investment Fund, 12.8% from the UAE's L'imad Holding Company, and 10.6% from the Qatar Investment Authority. Total indirect foreign ownership is expected to reach approximately 49.5%.
Despite the FCC's ruling, the merger remains stalled due to an antitrust lawsuit filed by California and 11 other states, as well as challenges from the Writers Guild of America. Negotiators are reportedly in advanced settlement talks with California Attorney General Rob Bonta to resolve these legal hurdles. Potential compromises include maintaining separate operations for movie studios or implementing independent content oversight for news units like CNN. Paramount faces a $7 million daily ticking fee if the deal is not finalized by October 1.
Entities
David Ellison · Federal Communications Commission · Paramount · Paramount Global · Public Investment Fund · RedBird Capital Partners · Rob Bonta · Warner Bros. Discovery
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Saudi Arabia's Public Investment Fund will hold a 15.1% stake. www.mediaplaynews.com · www.socialsamosa.com
- [● 16 SOURCES] The FCC approved Paramount's petition to allow indirect foreign equity ownership to exceed 25%. www.it-boltwise.de · srnnews.com · www.mediaplaynews.com · www.wdio.com · www.wirtualnemedia.pl · +11 more
- [● 2 SOURCES] The UAE's L'imad Holding Company will hold a 12.8% stake. www.mediaplaynews.com · www.socialsamosa.com
- [● 9 SOURCES] Foreign investors will hold non-voting shares, leaving 100% of voting control to the Ellison family and RedBird Capital Partners. www.it-boltwise.de · srnnews.com · www.mediaplaynews.com · www.wdio.com · www.wirtualnemedia.pl · +4 more
- [● 5 SOURCES] The total indirect foreign ownership stake is expected to reach approximately 49.5%. www.it-boltwise.de · www.mediaplaynews.com · arstechnica.com · variety.com · srnnews.com
- [● 5 SOURCES] The sovereign wealth funds from Saudi Arabia, Qatar, and the UAE are contributing a combined $24 billion. srnnews.com · www.wirtualnemedia.pl · arstechnica.com · www.wdio.com · wtop.com
- [● 10 SOURCES] The merger with Warner Bros. Discovery is currently facing an antitrust lawsuit from 12 U.S. states. srnnews.com · www.wirtualnemedia.pl · arstechnica.com · variety.com · offthepress.com · +5 more
- [● 2 SOURCES] The Qatar Investment Authority will hold a 10.6% stake. www.mediaplaynews.com · www.socialsamosa.com