The FCC's review finds no issues with Paramount's foreign ownership in its merger with Warner Bros. Discovery, paving the way for completion.
On September 17, 2026, the Federal Communications Commission (FCC) announced its approval of Paramount's proposed merger with Warner Bros. Discovery, specifically addressing foreign ownership stakes in the newly combined entity. This development was reported by Deadline.
The FCC found that the total foreign ownership of the combined company will be 49.5%. This includes a significant 38.5% interest from investment funds based in Saudi Arabia, Qatar, and Abu Dhabi. Paramount had submitted a petition to the FCC to secure this necessary approval, as any foreign ownership above 25% requires regulatory oversight. The agency stated that granting this petition serves the public interest, allowing the merger to proceed.
The approval is contingent on Paramount fulfilling additional conditions, including maintaining transparency around foreign influence. The FCC noted that foreign investors will not possess voting control or governance rights over the combined company, with oversight primarily remaining with the Ellison family, who will retain a majority of the voting interests.
In its proposal, Paramount emphasized that the foreign investments do not pose threats related to national security, law enforcement, foreign policy, or trade policy. The existing ownership structure indicates that while foreign entities have a financial stake, they cannot exert direct influence over governance or decision-making processes within the merged company.
This ruling followed a comprehensive review by the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector, aligned with recent concerns regarding foreign investments in American media entities. Paramount publicly stated that strict agreements have been made to ensure data security and to limit the rights and access of foreign investors.
Despite the FCC's approval, the decision has generated controversy. Anna Gomez, the sole Democrat on the FCC, along with some congressional Democrats, have expressed strong concerns regarding the implications of allowing substantial foreign ownership stakes in U.S. media companies. Gomez criticized the decision-making process for bypassing a full commission vote, highlighting the lack of accountability given the extent of foreign influence involved, claiming such actions secure control over media narratives and content production.
With the FCC's clearance, the merger of Paramount and Warner Bros. Discovery is one step closer to completion, significantly impacting the entertainment landscape. This transaction will create one of the largest media conglomerates globally, with a substantial reach in broadcasting, film production, and streaming services. The approval of the merger is expected to alter competitive dynamics within the industry, emphasizing the need for regulatory scrutiny on foreign financial influences in domestic media.
As the merger progresses toward finalization, stakeholders will closely observe how the combined entity navigates compliance with the FCC's conditions, particularly regarding foreign ownership. Paramount's management of foreign interests will be crucial to maintaining public trust and ensuring compliance with U.S. media regulations. Responses from industry watchdogs and legislators are likely to influence the dialogue surrounding foreign influence in American media.
For further details on related developments, please check out our coverage on Adam Smith's new role at Disney and the implications of streaming competition as industry dynamics evolve.
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