FCC approves Gulf funds' indirect stakes in Paramount-Warner deal; merger remains blocked

The Associated Press reported on September 18 that the FCC's Media Bureau approved indirect economic interests for sovereign wealth funds from Saudi Arabia, Qatar and the United Arab Emirates. Their combined commitment is $24 billion and is expected to represent nearly 49.5% of the merged company's indirect equity.

The FCC authorized up to 100% indirect, non-voting foreign equity to account for possible future investment. FCC staff said non-voting investors would not control the company. Paramount says governance would remain with David Ellison's family and RedBird Capital.

Democratic FCC Commissioner Anna Gomez opposed the decision, arguing that large foreign-government investments may carry influence even without formal voting rights. That is a regulatory concern, not proof that editorial interference has occurred.

Paramount's offer is $81 billion, with the broader transaction valued near $111 billion including debt and other factors. Antitrust suits by California and 11 other states, as well as the Writers Guild of America, remain pending, and Paramount has agreed not to close before the litigation is heard. This report is confirmed, but completion of the merger remains unresolved.