FCC reportedly clears Paramount’s planned 49.5% foreign equity stake

Reported clearance for non-voting equity investments

Ars Technica reports that the FCC Media Bureau approved Paramount Skydance’s request concerning foreign ownership. The company said sovereign-linked funds from Saudi Arabia, the United Arab Emirates, and Qatar plan to invest in its Warner Bros.

Discovery transaction through non-voting shares. The reported order says the foreign investors may not influence content decisions, company management, or access non-public US person data, and requires Paramount to monitor foreign ownership.

Paramount needed FCC approval for foreign ownership above 25 percent because it holds licenses for local CBS broadcast stations.

The reported declaratory ruling permits up to 100 percent aggregate indirect foreign equity interest in Paramount, subject to conditions. Paramount says its current deals would result in 49.5 percent indirect foreign ownership.

Separating equity ownership from voting control

The ruling reportedly allows a much larger level of indirect foreign equity ownership than the 25 percent threshold that normally requires FCC approval for broadcast licensees. It also addresses ownership of a major US media company while preserving voting control for the Ellison family and RedBird Capital Partners.