FCC clears Middle East sovereign-wealth funding for Paramount's Warner Bros. Discovery takeover

The Federal Communications Commission, chaired by Brendan Carr, voted to let three Middle-East sovereign-wealth funds own over a quarter of Paramount, clearing a key obstacle to its $111 billion bid for Warner Bros. Discovery. The Public Investment Fund, Qatar Investment Authority and Abu Dhabi Investment Authority will collectively supply about $24 billion in non-voting equity, boosting Paramount’s capital to compete in TV broadcasting.

The FCC ruled that the public interest is served and that the investors will have no governance rights, cannot access non-public U.S. data, and face penalties for violations. The decision follows a March letter from Democratic senators raising concerns about editorial influence at several outlets, which the commission rejected. Paramount said the Ellison family and RedBird will retain the largest voting stake once the merger closes. The approval includes conditions to ensure foreign investors cannot control the combined company’s broadcast operations.