Paramount Skydance Corporation filed a request with the Federal Communications Commission on April 27, 2026 to obtain approval for a foreign ownership structure that would allow non‑U.S. investors to hold 49.5% of the company’s equity after the pending acquisition of Warner Bros. Discovery (WBD). The filing follows the February 27, 2026 agreement to acquire WBD for approximately $110.9 billion, a deal that was approved by WBD shareholders on April 23, 2026 and is expected to close in the third quarter of 2026.
The proposed ownership split is 38.5% from three Middle‑East sovereign‑wealth funds—Saudi Arabia’s Public Investment Fund, Qatar’s Qatar Investment Authority, and Abu Dhabi’s L’imad Holding—and an additional 11% from other international retail and institutional shareholders. The remaining 50.5% of equity, and all voting control, will be held by U.S. entities, the Ellison Family Trust and RedBird Capital Partners, ensuring compliance with FCC rules that limit foreign ownership of broadcast‑license holders to 25% unless a public‑interest finding is made.
Under Section 310(b) of the Communications Act, the FCC must grant a public‑interest finding and approval for any foreign ownership above 25%. The review involves the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector and requires consultation with executive‑branch agencies on national security and foreign‑policy implications. Paramount Skydance’s filing therefore signals a significant regulatory hurdle that could affect the timing and certainty of the WBD acquisition.
Strategically, the acquisition is designed to create a media conglomerate capable of competing with Disney, Netflix, and Amazon. The deal combines Paramount Skydance’s streaming platforms—Paramount+ and the newly acquired HBO Max—with WBD’s extensive content library, offering synergies in content production, distribution, and advertising. The $31 per share cash component of the transaction underscores the scale of capital being deployed by the Middle‑East sovereign‑wealth funds.
The FCC’s approval of nearly 50% foreign ownership is unprecedented for a U.S. broadcast‑license holder and could attract heightened scrutiny. While Paramount Skydance has positioned the structure to maintain U.S. control, regulators will examine the national‑security implications of the foreign investment, potentially delaying the closing of the deal. The outcome will influence the company’s competitive positioning and its ability to execute the planned content and streaming strategy.
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