Paramount Moves to Get FCC Approval for Middle East Investors in Warner Acquisition

Paramount is asking U.S. regulators for approval tied to major foreign investment connected to its planned $111 billion purchase of Warner Bros. Discovery. The request was filed with the Federal Communications Commission and is part of the regulatory process reviewed by the agency.

The filing involves money coming from three large sovereign wealth funds based in the Middle East. These include Saudi Arabia’s Public Investment Fund, a fund from Abu Dhabi, and Qatar’s Investment Authority. According to reporting based on the filing, these groups are expected to help fund the deal with billions in investment.

Paramount says that control of the company will remain in U.S. hands. David Ellison, Larry Ellison, and RedBird Capital are set to hold all voting power in the business. The foreign investors, according to the company, will only receive non-voting equity stakes and will not have control over decisions.

The company estimates that foreign investors could end up holding close to half of Paramount’s total equity after the transaction closes. The figure given in the filing is around 49.5 percent. Even so, Paramount stresses that this does not translate into control of the company.

The FCC request also includes a broader approval that would allow up to full foreign ownership of equity or voting shares. However, this is described as a standard regulatory step and not a change in the company’s actual ownership plan.

A company spokesperson said the filing is routine for a deal of this size and structure. They also said the FCC review is separate from the main acquisition process, which has already been approved by Warner Bros. Discovery shareholders.

The statement also explained that after the deal is completed, the Ellison family and RedBird Capital would remain the main controlling group. They would hold all voting shares, while foreign investors would not have governance rights, board seats, or voting control.

Reports linked to the filing say the Middle East funds could contribute around $24 billion in total financing. The breakdown shared in the document shows Saudi Arabia’s fund as the largest investor, followed by Abu Dhabi and Qatar. Together, they would hold a significant share of non-voting equity in the company.

Paramount is also working with a U.S. government advisory body that reviews foreign involvement in telecom and media companies for security concerns. This group helps the FCC assess national security risks in such transactions.

In the filing, Paramount’s legal chief Makan Delrahim said foreign investment could help the company grow and stay competitive. He pointed to areas like news production, technology upgrades, and content expansion.

He wrote, “Reducing barriers to further investment in Paramount, including by allowing the company to pursue additional capital from non-U.S. investors, will enable it to allocate additional resources to preserve and enhance the legacy and broad reach of the Licensees’ television broadcast operations.”

He also said the added funding could help the company compete better in the wider media market and support long-term stability in a changing industry.

Overall, this deal shows how large modern media acquisitions often depend on complex international funding structures, even when voting control stays domestic. It also highlights how closely regulators watch foreign investment in major U.S. media assets.

This kind of deal shows how global the media business has become. Money now comes from many regions, but control rules are still strict in the U.S. It will be interesting to see how regulators handle the balance between investment and oversight. What do you think about this kind of foreign-backed media deal? Share your thoughts in the comments.