FCC Clears Paramount's 49.5% Sale to Gulf Funds for $111 Billion Warner Deal
Updated
Updated · Ars Technica · Sep 18
FCC Clears Paramount's 49.5% Sale to Gulf Funds for $111 Billion Warner Deal
3 articles · Updated · Ars Technica · Sep 18
Summary
Paramount won FCC approval to raise indirect foreign ownership to 49.5%, clearing a key regulatory hurdle for sovereign wealth fund investments from Saudi Arabia, the UAE and Qatar.
U.S. law caps foreign ownership above 25% for broadcast license holders unless the FCC grants a waiver; Paramount needs one because it owns 28 local CBS stations.
The Gulf funds are expected to provide $24 billion toward Paramount's $111 billion purchase of Warner Bros. Discovery, with Saudi Arabia contributing $10 billion and Qatar and Abu Dhabi $7 billion each.
Anna Gomez, the FCC's lone Democrat, opposed the decision, saying the agency was allowing influence by repressive governments over a major U.S. media company.
The approval does not complete the merger: Trump-era Justice Department clearance is in hand, but a lawsuit by U.S. states still seeks to block the deal.