The Federal Communications Commission (FCC) approved Paramount Skydance’s request on September 17, 2026, allowing Middle Eastern royal families to hold a substantial stake in the merged Paramount-Warner Bros. Discovery. The sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi are set to indirectly own nearly 50% of the equity in the proposed mega-studio, which includes CBS, CNN, Comedy Central, HBO, and two historic Hollywood film studios.
Ellison required FCC approval due to the change in ownership structure of CBS. Under the Communications Act of 1934, restrictions on foreign ownership of broadcast outlets were established due to national security concerns, limiting foreign investors to owning no more than 25% of a company with a U.S. broadcast license unless the FCC determines that such ownership serves the public interest. CBS operates over two dozen TV stations with FCC licenses, including KCBS-TV Channel 2 and KCAL-TV Channel 9 in Los Angeles.
The royal families from Saudi Arabia, Qatar, and Abu Dhabi are expected to contribute $24 billion to the bid led by Larry Ellison. The FCC stated, "Upon review of [Paramount’s] Petition and consideration of the record of this proceeding, we find that the public interest would be served by granting the Petition," indicating that the proposed ownership changes would not result in a transfer of control of Paramount. The FCC noted that the Ellison family will retain a majority of the voting interests and control of Paramount.
FCC Chairman Brendan Carr, appointed by President Trump, has supported the merger. Concerns have been raised by residents of Los Angeles regarding the potential impact on the city’s identity and workforce, fearing that Paramount may relocate operations out of state.
Anna M. Gomez, the sole Democratic FCC commissioner, criticized the decision, stating it allows "some of the most repressive governments in the world indirectly control nearly all of a combined Paramount-Warner Bros." Gomez expressed concern that such a significant investment would secure influence over media content and called for a full commission vote on the matter, which did not occur.
Larry Ellison agreed to personally guarantee the $47 billion in equity needed to buy out Warner Bros. Discovery’s existing shareholders for a total of $81 billion. The sovereign wealth funds plan to invest $24 billion in the deal, with Saudi Arabia’s Public Investment Fund contributing $10 billion, while the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. will add $7 billion each.
The merger has faced antitrust challenges from California Attorney General Rob Bonta and 11 other Democratic attorneys general, who are seeking to review Paramount’s internal documents. The foreign ownership rules were established nearly a century ago to prevent hostile foreign entities from using U.S. airwaves for propaganda, especially during wartime.
Paramount expressed appreciation for the FCC’s review, stating that the Trump administration’s Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector had recommended approval of the deal, subject to conditions to protect U.S. consumer data. Once the deal is finalized, the Ellison family and RedBird Capital Partners will hold the largest equity stake in the combined company and 100% of the voting shares, with no other equity participant having governance rights.
Paramount has a dual-class stock structure, which will be replicated in the merged entity. The Ellison family owns 77.5% of Paramount’s voting Class A common stock, while RedBird holds the remaining 22.5%. The Ellison family also has 40% of the non-voting Class B shares.
Paramount stated that the merger will provide the scale and resources necessary to compete in the media industry, which faces significant pressure from large technology companies.