By JBizNews Desk | April 27, 2026
Paramount Global on Monday formally petitioned the Federal Communications Commission (FCC) for approval of a major foreign investment structure tied to its proposed acquisition of Warner Bros. Discovery, seeking clearance for nearly $24 billion in equity backing from three leading Middle Eastern sovereign wealth funds.
The filing, submitted under the leadership of FCC Chairman Brendan Carr and signed by Paramount’s Chief Legal Officer Makan Delrahim, outlines a post-merger ownership framework that would bring total indirect foreign equity ownership in the combined company to approximately 49.5%. Paramount emphasized in its petition that despite the scale of foreign capital, the structure does not constitute a transfer of control.
At the center of the financing are three major Gulf investors. Saudi Arabia’s Public Investment Fund (PIF) is set to hold a 15.1% equity stake, while the Qatar Investment Authority (QIA) will own approximately 10.6%. The United Arab Emirates’ sovereign vehicle, L’Imad Holding Company, is expected to control roughly 12.8%. Collectively, the three funds will contribute close to $24 billion, with PIF alone accounting for approximately $10 billion of that total.
Paramount noted that the sovereign wealth funds will hold approximately 38.5% of non-voting equity in the combined entity, underscoring that their positions are strictly passive. “These investors will not have voting control or operational influence over the company,” the filing states, reinforcing the company’s position that governance will remain firmly U.S.-based.
The FCC petition seeks a declaratory ruling that would allow foreign investors to exceed the statutory 25% ownership benchmark under Section 310(b) of the Communications Act. Specifically, Paramount is requesting approval for certain foreign investors to hold more than 5% voting interests, as well as advance authorization for non-controlling foreign investors to increase stakes up to 20%. In a broader procedural request, the company also asked for flexibility that could allow foreign ownership to reach up to 100% in the future, though it stressed that no such shift is currently planned.
Paramount framed the request as essential to maintaining competitiveness in a rapidly consolidating global media landscape. “Access to global capital is critical for scaling content production, distribution, and technology investment,” company representatives indicated in the filing, pointing to intensifying competition from streaming giants and international media conglomerates.
A key pillar of Paramount’s argument is that voting control will remain concentrated among U.S. stakeholders. David Ellison, alongside Larry Ellison and investment partner RedBird Capital, is expected to retain full control of voting shares in the merged entity. This structure, Paramount argues, ensures that editorial direction, strategic decisions, and corporate governance remain domestically controlled.
The filing arrives amid heightened political scrutiny in Washington. Lawmakers have raised concerns about the influence of foreign sovereign wealth funds—particularly those tied to governments in Saudi Arabia, Qatar, and the United Arab Emirates—on critical U.S. media assets, including CBS, CNN, and other major broadcast and news platforms. Some policymakers have called for a review by the Committee on Foreign Investment in the United States (CFIUS), which evaluates national security implications of foreign investments.
Paramount, however, characterized the FCC filing as a standard regulatory step. A company spokesperson said, “An FCC filing is completely standard for investments such as this and is not a condition to closing Paramount’s acquisition of Warner Bros. Discovery.”
The broader transaction—valued at approximately $110 billion to $111 billion—would create one of the most powerful media conglomerates globally. The combined company would unite Paramount’s portfolio, including CBS, MTV, and Paramount Pictures, with Warner Bros. Discovery’s assets such as CNN, HBO, and the Warner Bros. film and television library.
Several regulatory approvals have already been secured, and the companies are targeting a closing by the end of September 2026. Still, the scale and structure of the foreign investment component ensure that the deal will remain under intense regulatory and political review in the months ahead.
As global capital continues to play a larger role in U.S. industries, Paramount’s approach may set a precedent for how foreign sovereign wealth is integrated into strategically sensitive sectors. The outcome of the FCC’s review will likely shape not only the future of this deal, but also the broader framework governing foreign investment in American media.
JBizNews Desk
