The Federal Communications Commission (FCC) granted a waiver for the Paramount-Skydance $110 billion acquisition of Warner Bros. Discovery. This ruling allows foreign ownership to exceed the standard 25% cap. Individual foreign investors may now hold up to 20% equity.
These investors will hold no voting stock to address national security concerns. The approval facilitates the transfer of broadcast licenses held by CBS stations. The Ellison family and RedBird Capital Partners will retain 100% of the voting shares.
Foreign entities are prohibited from influencing management or accessing non-public user data. A group of 12 state attorneys general has sued to block the merger on antitrust grounds. A trial for the challenge is scheduled for March.