Three Gulf sovereign wealth funds are supplying $24 billion in financing, while voting control remains with the Ellison family and RedBird Capital under FCC restrictions on management, editorial influence and access to nonpublic U.S. data.
The Federal Communications Commission has approved foreign investment supporting Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, clearing another regulatory hurdle for the major media transaction.
What the FCC approved
Sovereign wealth funds tied to Saudi Arabia, Qatar and Abu Dhabi have committed roughly $24 billion to help finance the transaction. Paramount has said those three Gulf funds are expected to hold about 38.5% of the combined company’s equity after closing, while total foreign ownership is expected to reach approximately 49.5%.
The foreign investors would hold nonvoting Class B shares. The Ellison family and RedBird Capital Partners would retain 100% of Paramount’s voting shares, according to Paramount and the FCC.
The FCC order bars the foreign investors from influencing company management or content decisions and from accessing nonpublic data about U.S. citizens. Paramount has said those safeguards mean the investment would not transfer operational or editorial control of the company.
Paramount said the financing would give a combined Paramount–Warner Bros. Discovery greater scale and resources to compete, invest and produce content. Paramount owns CBS and other media properties, while Warner Bros. Discovery owns CNN, HBO and additional entertainment brands.
Concerns over foreign influence
Democratic FCC Commissioner Anna Gomez opposed the decision, arguing that investments of this size could create influence even without formal voting rights. She also said the issue should have been considered in a public vote by the full commission rather than approved at the bureau level.
The FCC, however, concluded that the nonvoting structure and related restrictions were sufficient to prevent the foreign investors from exercising control over Paramount’s broadcast operations or editorial decisions.
Deal still faces antitrust challenge
The broader transaction is valued at roughly $110 billion to $111 billion including debt, with about $81 billion associated with the acquisition of Warner Bros. Discovery. The merger remains delayed by antitrust litigation brought by 12 states, with a federal court trial scheduled for March. The Writers Guild of America has also challenged the deal.
