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FCC clears Gulf state funds to hold nearly half of Paramount-Warner Bros. equity

FCC clears Gulf state funds to hold nearly half of Paramount-Warner Bros. equity

Money Moves

Saudi, Emirati, and Qatari funds get non-voting stakes while Ellison family keeps voting control; merger frozen by 12-state antitrust suit

September 17th, 2026: FCC approves Gulf state equity investment in Paramount

Overview

Updated 1 hour ago

The Federal Communications Commission approved a plan that lets the sovereign wealth funds of Saudi Arabia, the United Arab Emirates, and Qatar hold nearly half the equity of the company that owns CBS and is buying Warner Bros. Discovery. The investors receive only non-voting shares; the Ellison family keeps full voting control.

The ruling waives a statutory limit capping foreign ownership of US broadcast licensees at 25 percent, permitting up to 100 percent of indirect foreign equity. The affected assets span CBS, CNN, HBO, and two major Hollywood studios. The merger stays frozen while 12 states challenge it in court, with the antitrust trial set for March.

Why it matters

If the merger closes, three Gulf state funds hold nearly half the equity of a company controlling CBS, CNN, HBO, and two major studios.

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Key Indicators

49.5%
Foreign equity stake approved by FCC
Sovereign wealth funds of Saudi Arabia, the UAE, and Qatar will hold this share, in non-voting stock.
38.5%
Combined stake of the three Gulf funds
Saudi Arabia's fund holds 15.1%, the UAE's L'imad 12.8%, and Qatar's fund 10.6%.
100%
Maximum indirect foreign equity permitted
The FCC allowed up to 100% to account for future changes in publicly held shares.
25%
Default statutory foreign ownership cap
Broadcast licensees face this limit unless the FCC finds the public interest served.
28
CBS broadcast stations Paramount owns
Each station holds an FCC license subject to the foreign ownership rules.

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People Involved

Organizations Involved

Timeline

June 2026 June 2027

5 events Latest: September 17th, 2026 · 2 weeks ago
Tap a bar to jump to that date
  1. Justice Department approves Paramount-Warner Bros. merger

    Regulatory

    DOJ cleared the deal; months later, 12 states sued to block it.

Scenarios

1

Paramount-Warner Bros. merger closes with Gulf stakes intact

Possible Resolves by Jun 1, 2027

Discussed by: Trade press and the companies themselves

If the 12-state antitrust suit fails at trial or settles early, the deal closes by June 1, 2027, and the Gulf funds take their non-voting equity. The FCC's public-interest finding stands because the funds hold no voting power. The federal judge's preliminary ruling that the merger likely reduces competition is the main obstacle.

2

Court blocks merger and Gulf equity plan collapses

Possible Resolves by End of 2027

Discussed by: The 12-state coalition, Writers Guild, and Free Press

A final judgment upholds the finding that the merger would reduce competition, the deal is abandoned, and the foreign investment never materializes at the planned scale. The FCC ruling becomes moot. This would leave Paramount independent with CBS, financed without the Gulf equity.

3

Settlement restructures the Warner Bros. deal

Uncertain Resolves by Jun 1, 2027

Discussed by: Business press covering the litigation

Paramount and the states negotiate divestitures or other remedies to ease competition concerns, allowing a modified merger to close. The Gulf funds' stakes proceed as approved, but the merged entity sheds assets to satisfy regulators.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

January 2016

Dalian Wanda buys Legendary Entertainment (2016)

Chinese conglomerate Dalian Wanda, led by Wang Jianlin, bought Hollywood's Legendary Entertainment for $3.5 billion, then the largest Chinese acquisition of a US media company. Legendary produced 'Jurassic World' and the 'Dark Knight' trilogy.

Then

Wanda gained control of a major Hollywood producer and pledged to build a Chinese film studio.

Now

Wanda's US ambitions faded under Chinese capital controls; it sold down the stake and Legendary was later absorbed into another deal.

Why this matters now

Shows a state-linked foreign power taking operational control of a US studio. The Gulf funds here get no voting or creative control, only non-voting equity.

March 2018

CFIUS blocks Broadcom-Qualcomm (2018)

President Donald Trump, citing national security, blocked Singapore-based Broadcom's $117 billion hostile bid for chipmaker Qualcomm after a federal review. It was then the largest tech merger ever attempted.

Then

Broadcom abandoned the bid and moved to redomicile in the United States.

Now

It reinforced the national-security basis for keeping foreign ownership out of US strategic industries.

Why this matters now

Contrast with the FCC's decision: Broadcom was blocked outright on security grounds, while the FCC let Gulf funds take large non-voting equity stakes in a broadcaster after a public-interest finding.

Sources

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