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FCC Approves 49.5% Foreign Equity Stake for Paramount-Warner Bros. Merger

19 September 2026 · Source balance: Centre-Left

On September 17, the Federal Communications Commission approved Paramount's petition to allow sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi to collectively hold 49.5 percent of equity in the combined Paramount-Warner Bros. company, with as much as 38.5 percent from the three Gulf states. The decision grants what has never been approved before: allowing foreign government-controlled investment entities to hold significant stakes in a major American broadcaster. Paramount owns 28 TV stations, so foreign ownership above 25 percent requires FCC approval. The foreign investors will hold non-voting Class B shares only, while the Ellison family and RedBird Capital Partners retain all voting control through Class A shares. The FCC concluded the arrangement serves the public interest by giving Paramount greater access to capital needed to compete against dominant tech companies. However, the decision drew immediate criticism from Democratic lawmakers and media advocates who argue that non-voting equity shares can still confer substantial influence over editorial decisions and content at major news outlets like CBS News and CNN, particularly given the authoritarian nature of the investing governments.

Key facts

  • Saudi Arabia's Public Investment Fund commits $10 billion; Qatar Investment Authority and Abu Dhabi's L'imad Holding each contribute $7 billion, totaling $24 billion
  • Foreign investors will hold non-voting Class B shares; Ellison family and RedBird Capital Partners retain 100% of voting Class A shares
  • The combined Paramount-Warner Bros. entity would control CBS stations, CNN, HBO Max, Warner Bros. film studios, and numerous streaming and cable networks
  • This is the first time the FCC has approved significant ownership by a foreign government-controlled sovereign wealth fund in an American broadcaster
  • Democratic lawmakers including Bernie Sanders, Elizabeth Warren, and FCC Commissioner Anna Gomez have strongly criticized the decision
  • The merger still faces legal challenges from 12 state attorneys general led by California, with trial scheduled for March 2027

How different outlets framed it

Left-leaning coverage: Progressive critics stress that non-voting equity ownership still creates practical financial leverage and influence over content decisions at major news outlets, making the FCC's assurances about firewall protections unenforceable. They highlight concerns that foreign governments could suppress reporting on sensitive issues—pointing to Saudi Arabia's role in journalist Jamal Khashoggi's death—and note this marks an unprecedented approval of direct government-backed ownership in American media.

Right-leaning coverage: Right-leaning and tech-focused commentary expresses skepticism that structural safeguards can prevent influence in practice, questioning whether ownership of nearly half a massive media company allows meaningful influence regardless of voting rights. Some note this approval came from a Trump-appointed FCC chair despite the deal involving controversial foreign governments, potentially highlighting perceived inconsistency in national security positions.

Limits of this briefing

The merger has not yet closed and faces separate antitrust litigation, so the foreign investment may not ultimately materialize. Some reporting conflates direct Middle Eastern fund stakes with total potential foreign ownership (which could reach 87.5 percent if all approved investors maximize their positions), potentially overstating immediate foreign control. Limited right-leaning editorial commentary was found; most criticism comes from the left and center-left.

Sources

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