WASHINGTON, D.C. — The Federal Communications Commission has approved foreign investment connected to Paramount Skydance’s proposed $110 billion acquisition of Warner Bros. Discovery, removing a major regulatory obstacle while imposing strict limits on voting rights and influence.
The FCC waived the usual 25% foreign-equity limit and will permit individual foreign investors to own up to 20% of the combined company’s equity. Those investors cannot hold voting stock, participate in management or content decisions, or access nonpublic information about U.S. citizens.
Paramount said the decision followed a national-security review by the federal agencies commonly known as “Team Telecom.” The company says the Ellison family and RedBird Capital Partners would control 100% of the combined company’s voting shares.
Democratic FCC Commissioner Anna Gomez objected, arguing that extensive foreign investment could still create influence despite the formal restrictions. That is Gomez’s assessment—not a finding that foreign investors would control the company.
The merger would combine major operations including CBS, CNN, HBO, Paramount+ and Warner Bros. However, it cannot close yet: a federal judge has temporarily blocked the transaction while 12 states pursue an antitrust challenge scheduled for trial in March.
Radio News Now questions
- How will the FCC monitor compliance with its prohibition against foreign investors influencing management or programming decisions?
- Even without formal voting control, can investors supplying substantial capital exert practical influence over company decisions?
- What would the consolidation mean for employment, local newsrooms and the ability of individual stations to reflect their communities?
Source: Reuters’ September 17 report