Why Three Foreign Governments Can Own Almost Half of Paramount and Warner
The Federal Communications Commission has let investment funds run by the governments of Saudi Arabia, Qatar and Abu Dhabi own 49.5% of the company in the Paramount-Warner Bros. deal. That waives the normal 25% limit on foreign ownership. The Verge
The permission was issued in Declaratory Ruling DA 26-1001 on September 17, 2026, and reported on September 18. It was granted under Section 310(b)(4) of the Communications Act of 1934, the law Paramount Global used to ask for a ruling on foreign ownership. FCC Public Notice
Paramount had asked for more. In filings made public in late April and early May 2026, the company asked for permission for up to 100 percent foreign ownership. FCC Filing The ruling did not go that far. It allows the 49.5% holding for the three named Gulf funds.
The main condition is control. The FCC said the shares being bought have no voting rights and would not allow influence or control over decisions involving the licensees, the companies that hold the broadcast licenses. It is like owning part of a house but not getting a vote on how it is run. The funds have a financial stake but no vote on licensee matters.
The ruling also sets an ongoing duty. Under DA 26-1001, Paramount must keep track of its foreign ownership and voting interests and count those interests. FCC Ruling It is not a one-time report. It continues as stock totals, sales to other investors and later transfers change things.
The approval came after months of questions. An FCC commissioner called for careful review of foreign investment in the Warner Bros. deal in early May 2026. Reuters On June 18, 2026, senators wrote to FCC Chair Carr about foreign funding in the Paramount-WBD merger. Senate Letter A group of Democratic senators separately raised concerns about Middle Eastern sovereign wealth funds taking stakes in the merger. Straits Times
The FCC step is one part of a wider process. Paramount received clearance for its Warner Bros. Discovery tender offer from Germany's foreign investment authorities on January 27, 2026. Paramount described its $30-per-share all-cash offer for Warner Bros. Discovery as superior. The FCC has noted that it has approved foreign ownership of up to 100% in certain cases, after review and approval of specific, named foreign individuals.
In my view, the structure counts more than the 49.5% number. It is financially large but legally limited. The FCC treated voting rights and control over licensees, not the raw share total, as the main issue, and added the tracking duty for Paramount. That trade is familiar in infrastructure and spectrum deals that face foreign investment reviews. Money can come from abroad, but control must stay local and easy to check.
The broader context here is what this allows next. The waiver from 25% to 49.5% does not remove the limit. It shows the limit can be waived with conditions when the shares are non-voting and the named buyers have been checked. TV and streaming now depend on cloud systems, recommendation software and ad tools that tech teams run. A clear, conditional path for large foreign investment gives those teams a steadier base for planning.
