FCC approves foreign owners for a merged Paramount-Warner Bros.

On Thursday, the Federal Communications Commission (FCC) approved a request from Paramount Skydance to permit Middle Eastern royal families to possess a significant share in the merged Paramount-Warner Bros. Discovery. Foreign investors, including sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, are expected to indirectly own nearly half of the equity in David Ellison's proposed mega-studio.

This ownership stake will grant them substantial control over CBS, CNN, Comedy Central, HBO, and two iconic Hollywood film studios. Paramount requested the FCC, led by President Trump's appointee Brendan Carr, to allow foreign investors to potentially acquire an even larger stake in the merged entity to secure additional capital for operations post-deal closure.

The FCC granted Paramount's petition, as the merger would alter the ownership structure of CBS, a broadcast outlet restricted under the Communications Act of 1934 due to foreign ownership limitations. The FCC deemed the public interest would be served by allowing the foreign ownership, noting that Paramount would retain majority voting interests and control.

CBS, owned by Paramount, holds numerous TV stations with FCC licenses, including KCBS-TV Channel 2 and KCAL-TV Channel 9.