Brendan Carr’s FCC is more worried about who The View interviews than foreign governments owning Paramount / The commission is waiving its rules to let foreign wealth funds own 49.5 percent of Paramount-Warner Bros.

The FCC now permits foreign governments to hold significant equity in U.S. media companies without voting rights, creating a pathway for indirect influence.

The U.S. Federal Communications Commission (FCC) has waived its foreign ownership rules to permit three sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi to collectively own 49.5 percent of Paramount-Warner Bros. The decision allows these government-controlled funds to exceed the typical 25 percent foreign equity limit. FCC Commissioner Brendan Carr's tenure has seen the commission focus on domestic media content, including threatening broadcasters and attempting to influence interview subjects. In this instance, the FCC justified the waiver by stating the purchased stocks lack voting rights, thus preventing foreign entities from exerting control. However, this decision has drawn criticism from advocacy groups like Free Press and Democratic Commissioner Anna Gomez, who argue that such a substantial investment in a major American media company inherently grants influence and potential control over news dissemination, raising concerns about propaganda.

This FCC ruling signals a significant shift in how foreign investment in American media is regulated, prioritizing equity stakes over direct control. By allowing a nearly 50 percent stake without voting rights, the commission is creating a new model where influence can be wielded through substantial financial ownership, even without explicit control mechanisms. This may set a precedent for future deals involving foreign governments and sensitive industries, potentially impacting the diversity of voices and perspectives in American media. Critics are concerned that this move undermines the FCC's mandate to protect domestic media interests from foreign governmental interference.

The decision directly affects the operational and editorial independence of Paramount-Warner Bros., potentially shaping its content and news coverage to align with the interests of its foreign government investors. It also raises concerns for other media companies considering similar investment structures and for the public's access to unbiased information. The FCC's justification, focusing narrowly on voting rights, ignores the broader implications of financial leverage and the potential for propaganda, which Free Press highlighted. This regulatory interpretation will likely face continued scrutiny and potential challenges from lawmakers and public interest groups.