Paramount Moves to Secure FCC Greenlight for Middle East Backing in Warner Deal

Paramount has asked U.S. regulators to approve foreign investment tied to its planned $111 billion acquisition of Warner Bros. Discovery. The request was filed with the Federal Communications Commission and reported through industry coverage and a filing signed by Paramount’s legal chief Makan Delrahim.

The company is seeking approval for money coming from three major sovereign wealth funds in the Middle East. These include Saudi Arabia’s Public Investment Fund, a fund from Abu Dhabi, and Qatar’s Investment Authority. The investment is meant to support the larger deal structure, not to change control of the company.

Paramount makes clear in its filing that control will stay with David Ellison, Larry Ellison, and RedBird Capital. According to the company, they will hold all voting power. The foreign investors are only getting non-voting shares, meaning they would not control decisions.

The filing also says that nearly half of Paramount’s equity could end up held by foreign investors after the deal is completed. The company estimates that figure at around 49.5 percent.

Paramount is also asking the FCC for broad approval that would allow foreign ownership up to 100 percent of equity or voting interests. The company describes this as a standard procedural step tied to regulatory review rather than an actual plan to change ownership structure.

A Paramount spokesperson said the filing is a normal requirement for this type of transaction. They also stressed that the approval process is separate from the main acquisition, which has already been approved by Warner Bros. Discovery shareholders.

The spokesperson said that once everything closes, the Ellison family and RedBird Capital will remain in control of voting shares and governance. Foreign investors will not have voting rights or board seats, according to the statement.

Reports indicate the three sovereign wealth funds are expected to contribute around $24 billion in funding. The FCC filing breaks down expected stakes after completion, with the Saudi fund holding the largest share at 15.1 percent, followed by Abu Dhabi at 12.8 percent and Qatar at 10.6 percent. Together, they would account for about 38.5 percent of the company’s equity, but again without voting power.

Paramount is also in discussions with a U.S. government advisory group that reviews foreign participation in telecom and media sectors for security concerns.

In its filing, Delrahim argued that bringing in foreign capital would help strengthen Paramount’s operations. He said it could support local news, improve technology, and expand programming. He also pointed to sports rights deals as an example of how investment could be used.

Delrahim wrote, “Reducing barriers to further investment in Paramount, including by allowing the company to pursue additional capital from non-U.S. investors, will enable it to allocate additional resources to preserve and enhance the legacy and broad reach of the Licensees’ television broadcast operations.”

He added that stronger investment could help the company compete better in the changing media market and deal with pressure facing traditional broadcasters.

From a broader view, this is a major media deal that depends not just on company approvals but also on government review. The involvement of large foreign funds also adds more attention to the regulatory process. It will be interesting to see how the FCC responds and whether any conditions are added.

What do you think about big media companies relying on foreign investment like this? Share your thoughts in the comments.