FCC lets Paramount sell 49.5% equity stake to Saudi Arabia, UAE, and Qatar | FCC rejects concerns about repressive governments buying influence over CBS owner.

The FCC allowed foreign governments to buy significant non-voting shares in a major U.S. media company, bypassing the typical commission vote for such a decision.

The Federal Communications Commission (FCC) has approved Paramount Global's plan to sell a 49.5% equity stake to the sovereign wealth funds of Saudi Arabia, the UAE, and Qatar. This approval comes despite concerns raised by FCC Commissioner Anna Gomez and Senate Democrats regarding potential foreign influence over a major U.S. media company. Under U.S. law, foreign ownership of companies holding broadcast licenses cannot exceed 25% without FCC approval. Paramount, which owns CBS and its 28 local stations, petitioned for a waiver to allow indirect foreign ownership of up to 49.5% as part of a larger $111 billion deal to acquire Warner Bros. Discovery, which is partially financed by these foreign investments. The foreign investors will receive non-voting shares, with David Ellison and the Ellison family retaining control through voting shares. The FCC's Media Bureau rejected opposition arguments, deeming them "unconvincing" and stating the investment is in the public interest, citing potential for innovation, job creation, and economic strength.

This decision signals a significant shift in how the FCC interprets foreign ownership rules for media companies, prioritizing economic arguments over concerns about political influence. By allowing nearly half of Paramount Global to be indirectly owned by sovereign wealth funds of countries known for press suppression, the FCC is effectively opening the door for similar arrangements, potentially impacting the independence of American media. The approval, conducted at a staff level without a full commission vote, raises questions about transparency and accountability in such critical regulatory decisions.

The ruling affects how U.S. media companies can pursue foreign investment, potentially making it easier for them to finance large acquisitions and operations. However, it also intensifies the debate about the influence of authoritarian regimes on Western media landscapes. Future regulatory scrutiny may focus on the practical implications of non-voting stakes and the FCC's mechanisms for ensuring content independence and data privacy under such ownership structures.