FCC approves foreign owners for a merged Paramount-Warner Bros.

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Set us as preferred The Federal Communications Commission on Thursday granted Paramount Skydance’s request to allow Middle Eastern royal families to hold a substantial stake in a merged Paramount-Warner Bros.Discovery.The sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi are slated to indirectly own nearly 50% of the equity in David Ellison’s proposed mega-studio, Paramount-Warner Bros.

That will give them a hefty stake in CBS, CNN, Comedy Central, HBO and two historic Hollywood film studios.Ellison needed FCC approval because the deal will change the ownership structure of CBS.

As part of the Communications Act of 1934, Congress placed restrictions on foreign ownership of broadcast outlets because of concerns about national security.Current rules prevent foreign investors from owning more than 25% of a company that holds a U.S.

broadcast license — unless the FCC determines that foreign ownership would serve a public interest.CBS owns more than two dozen TV stations with FCC licenses, including KCBS-TV Channel 2 and KCAL-TV Channel 9 in Los Angeles.

Hollywood Inc.Royal families from Saudi Arabia, Qatar and Abu Dhabi would contribute $24 billion to the Larry Ellison bid.“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,” FCC said in its ruling, noting that Paramount has said the proposed ownership changes would “not result in a transfer of control of Paramount.” Instead, “Ellison family will retain a majority of the voting interests and control of Paramount,” the FCC said.FCC Chairman Brendan Carr, an appointee of President Trump, has been supportive of Paramount’s takeover of Warner Bros.

Trump and his lieutenants, including Defense Secretary Pete Hegseth, have been cheering for...