The US Federal Communications Commission has approved an exemption allowing sovereign funds from the UAE, Saudi Arabia and Qatar to exceed the foreign-ownership limit in the proposed Paramount Skydance-Warner Bros Discovery merger.
The funds will indirectly hold 49.5% of the combined company’s equity, without voting rights. US rules generally limit foreign ownership in companies holding a US broadcast licence to 25% unless the FCC grants approval.
The commission said the waiver serves the public interest and allows individual foreign investors to hold up to 20% of the equity. Paramount has said the investment will not transfer control, with the Ellison family retaining a majority of voting interests.
The Gulf sovereign funds are backing the transaction with a combined $24 billion in equity. Saudi Arabia’s Public Investment Fund is expected to contribute $10 billion, while Qatar’s Investment Authority and the UAE’s L’imad Holding are each expected to provide $7 billion.
RedBird Capital Partners is also involved, backing $47 billion in equity alongside the family of Oracle co-founder Larry Ellison. Warner Bros Discovery shareholders approved the proposed $110 billion merger in April.
Source: Agbi
