Paramount Skydance filed a formal request with the Federal Communications Commission on April 27 to allow foreign investors to indirectly hold more than 25 % of the company’s equity as part of its $110.9 billion acquisition of Warner Bros. Discovery.
The filing is required because the U.S. Communications Act limits foreign ownership of broadcast license holders to 25 % or less. Paramount Skydance’s financing package includes $24 billion from Middle Eastern sovereign‑wealth funds—Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding, and Qatar Investment Authority—alongside $41 billion in new equity and $54 billion in debt. The FCC must approve the higher foreign stake before the deal can close.
After the merger, the combined entity will be roughly 49.5 % foreign and 50.5 % domestic, with the Ellison family and RedBird Capital Partners retaining 100 % of voting control. Paramount’s broadcast assets, including CBS and a network of local television stations, trigger the FCC’s foreign‑ownership rules and make the regulatory clearance essential.
The FCC’s review is expected to conclude in Q3 2026, aligning with the anticipated closing of the transaction, which received Warner Bros. Discovery shareholder approval on April 23. Recent FCC rule changes effective May 11 streamline the process for foreign‑ownership exceptions, potentially expediting the approval.
Paramount Group, Inc. (PGRE) is a real‑estate investment trust and is unrelated to this filing; the regulatory action concerns Paramount Skydance. The FCC request underscores the importance of foreign capital in financing large media transactions and highlights the regulatory hurdles that must be cleared before the $110.9 billion deal can close.
If approved, the FCC clearance would allow Paramount Skydance to proceed with the acquisition without violating U.S. ownership limits, preserving its strategic timeline and financial plan.
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