US FCC approves 49.5% foreign equity in Paramount takeover of Warner Bros Discovery

Regulatory approval and ownership terms

The Federal Communications Commission on 17 September 2026 approved a petition by Paramount Skydance to permit foreign entities to hold up to 49.5% equity in its planned acquisition of Warner Bros. Discovery. Under federal broadcast rules governing Paramount's 28 television stations, foreign equity above 25% requires specific commission authorization. The decision allows three Middle Eastern sovereign wealth funds, the Public Investment Fund of Saudi Arabia, the Qatar Investment Authority, and the Abu Dhabi Investment Authority, to provide approximately $24 billion in non-voting equity toward the transaction. Total enterprise value for the acquisition is between $110 billion and $111 billion, including debt. Middle East funds will hold 38.5% of the combined company, with the Saudi fund taking a 15.1% position, while individual investors face a 20% holding cap. Voting stock remains 100% controlled by the family of Oracle co-founder Larry Ellison and private equity firm RedBird Capital Partners.

Foreign influence safeguards and national security review

The FCC media bureau determined that granting the petition served the public interest, concluding that the influx of international capital would enhance broadcast newsgathering capabilities without transferring control. The ruling prohibits foreign investors from holding voting stock, participating on the board of directors, or accessing non-public data on US citizens. Regulatory safeguards also mandate that foreign funds cannot direct content decisions, provide editorial commentary, or influence corporate management across outlets such as CBS News and CNN. The decision followed an assessment by the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector, after which Paramount submitted formal data protection commitments. The commission maintained that the financing framework prevents foreign state influence over American broadcasting licenses.

The commission addressed structural firewalls in its formal ruling.

We are persuaded by Paramount's argument that the Foreign Investors therefore will not be able to wield any influence, let alone control, over decisions involving the Licensees.

Political opposition and media advocacy objections

The approval drew opposition from Democratic lawmakers and advocacy groups regarding foreign state funding in American journalism. In March 2026, a group of Democratic senators asked the FCC to open a comprehensive inquiry into the editorial independence of CBS News and CNN. Senator Maria Cantwell and other lawmakers argued in May 2026 that the Communications Act restricts foreign government ownership of domestic broadcast licenses regardless of voting status. FCC Commissioner Anna Gomez, the sole Democrat on the commission, also raised objections during the review process. Media advocacy group Free Press opposed the petition, asserting that foreign government equity stakes in commercial news networks present propaganda risks.

Free Press detailed its concerns in a formal submission to regulators.

Control over for-profit, commercial domestic news media by any government is an extraordinary situation that would surely strike most Americans as unseemly, precisely because of the utility of the news media as a propaganda tool for those governments.

Legal battles and pending antitrust trial

Despite the FCC decision, the acquisition remains paused due to state-level antitrust litigation. California and 11 other US states filed a lawsuit in July 2026 challenging the merger on competition grounds, with additional challenges brought by the Writers Guild. A court trial for the 12-state antitrust lawsuit is scheduled to begin in March 2027. Outside the United States, the European Commission has approved Paramount's purchase of Warner Bros. Discovery, which also includes international properties such as Poland's TVN television network. Paramount chief executive David Ellison and his father Larry Ellison, a financial backer of the deal and political supporter of President Donald Trump, continue to contest the state lawsuits ahead of the 2027 trial date.