Paramount Tells FCC It Will Be 49.5% Foreign-Owned After Warner Bros. Discovery Merger
Paramount told federal regulators it will be 49.5% owned by foreign investors after merging with Warner Bros. Discovery. The company filed the request Monday asking the FCC to approve the foreign ownership stake.
Paramount asked federal regulators Monday to approve foreign investors owning nearly half the company after it merges with Warner Bros. Discovery. The media giant said it expects 49.5% foreign ownership once the deal closes.
The Federal Communications Commission must approve foreign ownership stakes in U.S. media companies. Current rules generally limit foreign ownership to 25%, but the FCC can grant exceptions.
The merger would combine Paramount's CBS, MTV, and Paramount+ streaming service with Warner Bros. Discovery's CNN, HBO, and Discovery Channel. Together, they would form one of the largest media companies in America.
Paramount's filing mentions Middle East investment as part of the foreign ownership. The company needs FCC approval before the merger can move forward.
Both companies have struggled with cord-cutting as viewers move away from traditional TV to streaming services. The merger aims to help them compete better against Netflix and Disney.
This merger would create a massive media company controlling popular TV channels and streaming services that millions of Americans watch daily. Foreign ownership rules exist to limit outside influence over U.S. media and information.
The FCC will review Paramount's foreign ownership request and decide whether to approve the exception.
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