FCC Approves Foreign Sovereign Wealth Fund Stakes in Paramount Skydance

The Federal Communications Commission has approved Paramount Skydance’s plan to sell large stakes to sovereign wealth funds in Saudi Arabia, the United Arab Emirates, and Qatar.

Paramount foreign ownership to reach 49.5%

Under U.S. law, companies licensed to operate broadcast stations require FCC approval when foreign owners directly or indirectly hold more than 25 percent of their stock. Paramount said indirect foreign ownership will reach 49.5% following the investment from a sovereign wealth fund.

In a petition, Paramount asked the FCC to remove restrictions on foreign ownership.

Paramount owns 28 CBS broadcast stations

Paramount, the owner of CBS, holds FCC licenses for 28 local CBS stations that it owns and operates. The company’s proposed $111 billion acquisition of Warner Bros. Discovery, funded in part by foreign investment, has not been completed after U.S. states filed lawsuits seeking to block the merger. The Trump administration’s Justice Department approved the deal.

FCC Democrat warns of foreign influence

FCC Chairwoman Anna Gomez, the commission’s only Democrat, criticized the decision to allow Paramount to sell indirect ownership to “some of the most repressive governments in the world.”

“I said it yesterday,” Gomez wrote. “Such a huge investment in America’s largest media company is not just buying stock, it’s securing influence over what is said and done.”

Paramount-Warner deal would combine major studios and streamers

The proposed Paramount-Warner deal would combine two of the biggest movie studios, merge the Paramount+ and HBO Max streaming services, and give Paramount ownership of CNN and other television channels.

“The fund plans to invest $24 billion in the Paramount-Warner deal,” the Los Angeles Times reported. According to the report, Saudi Arabia’s Public Investment Fund will contribute $10 billion, while Qatar Investment Authority and Abu Dhabi’s Rimad Holding Company will contribute another $7 billion.