Paramount Skydance has revealed that the combined Paramount–Warner Bros. Discovery entity will be 38.5% owned by Middle Eastern sovereign wealth funds following the close of its landmark merger, according to a filing submitted to the Federal Communications Commission (FCC).
The filing details that Saudi Arabia’s Public Investment Fund will hold a 15.1% stake, the United Arab Emirates’ sovereign wealth fund will own 12.8%, and the Qatar Investment Authority will control 10.6%. Together, the trio forms the bulk of the 49.5% foreign ownership in the newly merged media giant.
Despite the significant equity held by foreign investors, Paramount emphasised that control will remain firmly with the Ellison family, David Ellison and Larry Ellison, alongside RedBird Capital Partners, who will retain 100% of the voting power through Class A common stock.
Paramount is seeking regulatory flexibility from the FCC, requesting approval to allow foreign ownership beyond statutory limits. Specifically, the company asked to “(1) permit existing and prospective foreign investors to indirectly hold equity and voting interests in Paramount, in the aggregate, in excess of the 25% statutory benchmarks; (2) specifically approve certain foreign investors to indirectly hold equity and/or deemed voting interests of greater than 5% in Paramount; and (3) grant advance approval for the non-controlling prospective foreign investors to increase their indirect equity and/or voting interests up to 20% in Paramount.”
In a statement, a Paramount Skydance representative said, “Paramount has filed a customary petition for a declaratory ruling with the FCC relating to the indirect foreign investment in Paramount’s broadcast television stations as a result of the recent equity syndication. An FCC filing is completely standard for investments such as this and is not a condition to closing Paramount’s acquisition of WBD.”
The spokesperson added, “The combination of Paramount and WBD’s complementary assets will enhance competition while creating a strong champion for creative talent and consumer choice.”
Leave a Reply