Paramount-Warner Bros. Discovery Merger Clears FCC Foreign Ownership Review
The FCC Paramount’s proposed merger with Warner Bros. Discovery cleared an FCC review of its foreign ownership stake. Paramount has disclosed that total foreign ownership of the combined company would be 49.5%, including 38.5% from investment funds from Saudi Arabia, Qatar and Abu Dhabi. Paramount had petitioned the FCC to sign off on the foreign […]
On Thursday, the FCC granted the Paramount-Warner Bros. Discovery merger's request for foreign investors to hold a stake exceeding 25% of the combined company's equity. The foreign investment, led by a group of sovereign wealth funds from the Middle East, includes Saudi Arabia’s Public Investment Fund, United Arab Emirates’ L’imad Holding Company, and the Qatar Investment Authority.
These entities will collectively own 49.5% of the non-voting equity in Paramount while three Middle Eastern sovereign wealth funds have control of 38.5% of that stake. Additionally, other foreign equity owners like RedBird Capital Partners and entities that acquired Paramount’s Class B stock hold 5.8% and 5.2% of the total, respectively.
The FCC approved the merger despite ongoing litigation involving state attorneys general and the Writers Guild of America, with the trial set for March. Paramount will pay a $7 million per day ticking fee of $650 million per quarter during the delay, which will begin from October 1, 2025, until the trial outcome. The deal remains on hold, and if it does not close due to regulatory concerns, Paramount will pay Warner Bros. Discovery a $7 billion termination fee.
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