FCC Waives Foreign Equity Limits, Allows Saudi, Qatari, Abu Dhabi Stakes in Paramount

The Federal Communications Commission announced today that it will waive its 25‑percent foreign‑equity cap for the Paramount‑Warner Bros. merger, allowing the three sovereign‑wealth funds of Saudi Arabia, Qatar and Abu Dhabi to hold a combined 49.5 percent stake in the combined company. The decision lifts the FCC’s longstanding restriction that had limited foreign ownership of U.S. media outlets to a quarter of the equity.

Under the new ruling, the Saudi, Qatari and Emirati funds will be able to acquire a substantial share of the merged entity, a move that the FCC justified as consistent with its broader policy of encouraging foreign investment in U.S. media. The commission’s statement noted that the waiver would not affect the company’s editorial independence or regulatory compliance, and it defended the decision as a routine application of its authority.

The ruling comes amid a broader scrutiny of the FCC’s conduct during Chairman Brendan Carr’s tenure, when the agency was accused of threatening ABC, blocking stations from airing interviews with Democratic politicians, censoring late‑night hosts and intimidating journalists. Critics have pointed out a perceived double standard, noting that the FCC appears willing to allow significant foreign ownership by governments with repressive records while taking a hard line against domestic media. The full story was reported by The Verge.