FCC Clears Sovereign Wealth Funds to Take 49.5% Stake in Paramount-Warner Bros. Deal

The Federal Communications Commission has waived its long-standing cap on foreign equity ownership in broadcast media, allowing three government-run sovereign wealth funds — those of Saudi Arabia, Qatar, and Abu Dhabi — to collectively hold 49.5% of the combined Paramount-Warner Bros. entity. The agency’s media bureau granted the exception under Section 310(b)(4) of the Communications Act, which historically limited foreign ownership to 25%.

The decision, first announced by the FCC and reported by Bloomberg, marks one of the most significant departures from the agency’s foreign-ownership rules in recent memory. Sovereign wealth funds tied to repressive governments will now hold a substantial share of one of the largest American media conglomerates, which owns major news and entertainment properties.

A contrast in FCC enforcement priorities

The waiver has drawn attention given the agency’s posture under Chairman Brendan Carr toward domestic media companies. During his tenure, the FCC has repeatedly threatened ABC’s broadcast licenses, moved to block stations from airing interviews with Democratic politicians, pressured late-night hosts, and clashed with journalists over coverage decisions.

In its ruling, the agency defended the foreign-ownership exception, but critics note the juxtaposition: an FCC that has intervened aggressively in editorial matters at American broadcasters has shown no comparable hesitation about foreign government ownership of a major US media company. The approval follows months of scrutiny of the Paramount-Warner Bros. combination, which required multiple regulatory sign-offs.

The waiver does not resolve all questions around the deal, and foreign-ownership decisions of this scale have historically drawn congressional and public-interest objections. The FCC has not indicated whether the 49.5% ceiling reflects the maximum the funds may acquire or a negotiated threshold.

Market snapshot

Elsewhere in media-adjacent technology, Block, Inc. (XYZ) traded at $77.03, up 0.17% from its previous close of $76.90, giving the payments and fintech company a market capitalization of approximately $46.3 billion. Block operates through its Square merchant-services segment and Cash App consumer platform.

Source: original release

What to watch

• Whether Congress or public-interest groups formally challenge the foreign-ownership waiver
• Further FCC filings detailing governance terms for the sovereign wealth funds’ stakes
• Remaining regulatory approvals for the Paramount-Warner Bros. combination
• FCC decisions on broadcast license renewals, which continue to draw scrutiny