Paramount Skydance (PSKY) Files for FCC Clearance on $24B Middle East Funding in WBD Acquisition

Key Highlights Paramount Skydance has submitted an FCC petition seeking authorization for foreign entities to hold approximately 50% equity ownership Saudi PIF, Abu Dhabi’s L’imad Holding, and Qatar’s QIA are collectively backing the transaction with $24 billion in capital Federal regulations typically restrict foreign ownership of broadcast license holders to 25%, making regulatory clearance essential The Ellison family alongside RedBird Capital will maintain complete voting authority while Gulf investors remain passive without board representation Year-to-date performance shows PSKY declining 20.6%, with analysts assigning a Moderate Sell rating on TipRanks Paramount Skydance (PSKY) has submitted a petition to the Federal Communications Commission requesting authorization for foreign investors to control nearly half of its equity position—a critical regulatory milestone for its planned acquisition of Warner Bros. Discovery (WBD). Paramount Skydance Corporation Class B Common Stock, PSKY The regulatory submission, disclosed to the public this Monday, identifies three prominent sovereign wealth funds from the Middle East as primary financial backers: the Public Investment Fund of Saudi Arabia, L’imad Holding based in Abu Dhabi, and the Qatar Investment Authority. These entities are collectively pledging approximately $24 billion in capital to facilitate the transaction. Regulatory approval from the FCC becomes necessary because Paramount maintains ownership of CBS along with numerous regional television broadcasting stations throughout the country. Federal broadcasting regulations impose strict limitations on foreign ownership, typically capping such investment at 25% for entities holding broadcast licenses. Approaching the 50% threshold necessitates obtaining extraordinary regulatory permission. A company representative characterized the filing as “completely standard” procedure and emphasized it does not constitute a prerequisite for completing the transaction....