Paramount could settle with states over Warner Bros. as soon as this weekend, sources say

The Federal Communications Commission (FCC) has granted permission for foreign investors to participate in the $110 billion acquisition of Warner Bros Discovery by Paramount Skydance, despite concerns raised by Democratic senators about Middle Eastern sovereign wealth funds acquiring stakes. The commission waived the 25% foreign equity ownership cap and allowed individual investors to hold up to 20% of the equity.

Foreign investors will not have voting stock, and will not influence, direct, or control Paramount's content decisions, company management, or access to non-public data on US citizens. Paramount praised the decision, stating it followed a review of national security officials' concerns. The combined Paramount-Warner Discovery, after the deal closes, will be under the control of a group led by billionaire Larry Ellison and RedBird Capital Partners, who will hold the largest equity stake and voting shares.

The FCC stated that Middle Eastern investors could own about 85% of the equity after the deal, with Saudi Arabia's Public Investment Fund owning 15.1%. Democratic FCC Commissioner Anna Gomez criticized the decision, warning that it grants near-complete influence over the media company's operations to some of the world's most repressive governments.