FCC clears foreign stake in Paramount-Warner Bros. deal, but merger stays on hold
The Paramount takeover of Warner Bros. Discovery has cleared one regulatory hurdle in Washington, even as the deal itself stays frozen.
The Federal Communications Commission has approved Paramount's request to allow foreign investors to hold 49.5% of its equity once the deal is complete, according to Variety. Equity here means a financial stake. It does not mean control.
The FCC had to weigh in because Paramount owns 28 TV stations. US rules say any company that owns broadcast stations must get FCC permission if foreign ownership goes above 25%.
The money behind Paramount's bid comes from three Gulf state sovereign wealth funds, which are government-owned investment vehicles. The funds are from Saudi Arabia, Qatar and Abu Dhabi. Saudi funds alone would account for 38.5% of the combined company, Deadline reported.
Those investors will not hold voting stock, meaning shares that elect directors and decide company matters. The Ellison family and RedBird Capital Partners will own 100% of the voting stock in the combined Paramount-WBD company.
Paramount had asked for permission to go further, up to 100% foreign equity ownership, to leave room for future investment. The FCC granted that headroom. The condition is that Paramount must seek further approval if foreign entities are to own voting shares in future.
For viewers, this means nothing changes on screen yet. The merger is on hold pending an antitrust suit, a court case that argues a deal would harm competition. The suit was filed in July by California and 11 other states. Trial is scheduled to begin next March.
The foreign ownership question drew political opposition earlier this year. In June, Senators Cory Booker, Adam Schiff and Elizabeth Warren urged the FCC to halt the merger over national security risks, according to a Senate press release. The senators said the regulator should reject Paramount's request for up to 100% foreign ownership.
The takeover fight has run for months. Paramount has described its $30-per-share all-cash offer for Warner Bros. Discovery as superior. On 9 February 2026, the company told the US Department of Justice it had substantially complied with a "second request", a formal in-depth antitrust review, according to a company release.
Paramount also tried to block a rival bid. On 17 February 2026, it filed a proxy solicitation, a formal appeal to other shareholders, in opposition to a proposed acquisition of Warner Bros. Discovery by Netflix. Its own offer included a condition that Warner Bros. retain 100% ownership of its Global Networks business. Paramount amended its tender offer, its public offer to buy shares directly from shareholders, on 10 February to reflect its latest proposal.
