Business & Finance
FCC approves Paramount equity stake sale to Gulf sovereign wealth funds
Regulators approved a waiver allowing indirect foreign ownership to reach 49.5 percent despite criticism from an FCC commissioner.
The short version
- The Federal Communications Commission approved Paramount Skydance's plan to sell equity stakes to sovereign wealth funds from Saudi Arabia, the United Arab Emirates, and Qatar.[Ars Technica]
- US law requires FCC approval when broadcast licensees exceed 25 percent direct or indirect foreign ownership; Paramount expects its indirect foreign ownership to reach 49.5 percent.[Ars Technica]
- David Brown of the FCC Media Bureau concluded the capital injection serves the public interest by strengthening the broadcast sector, while FCC Commissioner Anna Gomez criticized the decision.[ABC News]
Key facts
- The FCC approved Paramount Skydance's plan to sell large equity stakes to sovereign wealth funds of Saudi Arabia, the UAE, and Qatar.[Ars Technica]
- Paramount expects its indirect foreign ownership to reach 49.5 percent following the investments, exceeding the standard statutory limit of 25 percent.[Ars Technica]
- David Brown, video division chief in the FCC's Media Bureau, determined that access to more capital would bolster the broadcast industry and serve the public interest.[ABC News]
- FCC Democratic Commissioner Anna Gomez criticized the ruling on social media, asserting that it allows repressive governments indirect control and secures influence over media output.[ABC News]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.