Why Foreign Investors Can Own Almost Half of a US TV Company but Not Control It
The Federal Communications Commission has said wealth funds from Saudi Arabia, Qatar and Abu Dhabi can own 49.5 percent of a combined Paramount-Warner Bros. if the merger happens. Engadget
That is much higher than usual. Normally, foreign investors can own no more than 25 percent of a U.S. company that runs TV stations on public airwaves. Paramount owns 28 such stations. That is why the FCC had to review the deal.
The key detail is the type of shares. The foreign stake would be held in Class B shares, which provide a share of the financial value but no vote on company decisions, totaling about 49.5 percent after the investment, according to agency papers. FCC DA-26-1001
In short, the Gulf funds can supply almost half the money but cannot vote it. The FCC said they "will not be able to wield any influence, let alone control, over decisions involving the Licensees."
Paramount-Warner Bros. had asked for more. It requested permission for up to 100 percent foreign ownership. The Commission did not grant that request. It said the company must file again before any foreign owner can hold voting shares.
The decision is in FCC document DA 26-1001. It is a Declaratory Ruling, a formal order that sets the limits, and it says Paramount needs FCC approval if foreign ownership goes past these terms. Paramount filed its request on April 24, 2026.
Think of it like helping pay for a restaurant but not choosing the menu. The money is welcome. The control stays local.
The broader context here is straightforward. TV stations use public airwaves, so the rules guard who controls them even when the money comes from abroad. A large non-voting stake lets the company raise funds without giving up control, and any move to voting shares requires a new review.
In my view, we have seen this pattern before with public resources. Financing has become global, but control stays home. Looking ahead, what this enables, if the merger closes on these terms, is a large media company with foreign backing while U.S. stations stay under domestic voting control.
