FCC lets Paramount sell 49.5% equity stake to Saudi Arabia, UAE, and Qatar

The Federal Communications Commission has authorized a proposal allowing Paramount to sell a nearly fifty-percent indirect equity stake to sovereign wealth funds from Qatar, the United Arab Emirates, and Saudi Arabia.

This regulatory waiver bypasses standard restrictions on foreign ownership of American broadcast licensees, which typically cap such investments at twenty-five percent. While federal regulators approved the measure through a staff-level decision rather than a full commission vote, the move has drawn sharp criticism from dissenting officials and lawmakers. Opponents argue that permitting foreign governments known for suppressing press freedom to hold massive stakes in major American media entities could compromise independent journalism and grant external influence over domestic news and entertainment programming.

The capital from these sovereign wealth funds is intended to help finance Paramount’s proposed merger with Warner Bros. Discovery, a transaction that would combine several prominent movie studios, streaming services, and television networks. However, this consolidation remains stalled due to a coalition of state attorneys general who have filed an antitrust lawsuit to block the multi-billion-dollar deal. Although federal regulators contend that the foreign investors will hold only non-voting shares with absolutely no editorial control or access to private user data, consumer advocacy groups and legal opponents maintain that the massive financial leverage of the investment could still yield practical influence over the company's operations. The ongoing legal challenge continues to delay the completion of the merger despite federal approvals.