FCC Approves Paramount's Stake Sale to Saudi Arabia, UAE, and Qatar

The Federal Communications Commission (FCC) yesterday approved Paramount's plan to sell substantial equity stakes to the sovereign wealth funds of Saudi Arabia, the United Arab Emirates, and Qatar.

Under U.S. law, companies holding licenses to operate broadcast stations require FCC approval for direct or indirect foreign ownership exceeding 25 percent of the company's stock. Paramount has stated that its indirect foreign ownership will reach 49.5 percent following investments from these sovereign wealth funds and had petitioned the FCC for a waiver of the foreign ownership limit.

Paramount, the owner of CBS, holds FCC licenses for 28 local CBS stations it operates. The company is also in the process of acquiring Warner Bros. Discovery for $111 billion, a deal partially financed by foreign investment. However, this acquisition is currently facing a lawsuit filed by U.S. states aiming to block the merger, despite earlier approval from the Trump administration's Department of Justice.