TLDR
- Paramount Skydance has filed with the FCC for approval of foreign investors owning just under 50% of its equity
- Three Middle East sovereign wealth funds — Saudi PIF, Abu Dhabi’s L’imad Holding, and Qatar’s QIA — are committing $24 billion combined
- FCC rules cap foreign ownership of U.S. broadcast license holders at 25%, requiring special approval
- The Ellison family and RedBird Capital will retain full voting control; foreign investors will be passive with no board seats
- PSKY is down 20.6% year-to-date, carrying a Moderate Sell consensus rating on TipRanks
Paramount Skydance (PSKY) has filed with the Federal Communications Commission asking for clearance to let foreign investors hold just under 50% of its equity, a key step in its push to acquire Warner Bros. Discovery (WBD).
Paramount Skydance Corporation Class B Common Stock, PSKY
The filing, made public Monday, names three Middle East sovereign wealth funds as the backers: Saudi Arabia’s Public Investment Fund, Abu Dhabi-based L’imad Holding, and the Qatar Investment Authority. Together, they are committing around $24 billion to support the deal.
The FCC filing is required because Paramount owns CBS and a network of local television stations. U.S. law generally bars foreign entities from owning more than 25% of companies that hold broadcast licenses. Pushing that figure close to 50% means Paramount needs special regulatory sign-off.
A Paramount spokesperson described the filing as “completely standard” and said it is not a condition to closing the deal.
Gulf Money Backs the Merger
The three sovereign funds are taking passive positions. According to Paramount’s filings, they will hold no board seats and play no role in company decisions.
Voting control stays firmly with the Ellison family — led by Paramount CEO David Ellison — and RedBird Capital, regardless of how much equity the foreign investors hold.
Paramount also built in a backstop. If the foreign funding falls through for any reason, the Ellison family has agreed to cover the equity portion themselves to keep the deal on track.
Paramount said FCC approval would reduce barriers to future non-U.S. investment and help the company expand its broadcast operations globally.
The company added that the new equity and efficiency gains from the Paramount-Skydance transaction would “better position the company to weather continuing challenges facing broadcasters and operators of linear pay-television networks.”
FCC Chair Brendan Carr told Reuters the commission’s role in the deal would be minor. He said the foreign ownership involved would likely qualify under existing rules as “bona fide debt.”
Where the Deal Stands
The FCC already approved the original Paramount-Skydance merger last July. This latest filing is a separate step tied specifically to the Warner Bros. Discovery acquisition.
Paramount said the deal would reduce barriers to future capital raises from non-U.S. investors, helping it compete with global media rivals.
Analysts are watching how quickly the FCC moves on the request and whether it attaches any conditions.
On TipRanks, PSKY carries a Moderate Sell consensus, based on five Hold ratings and five Sell ratings. The average price target sits at $11.38, implying about 7.4% upside from current levels.
PSKY is down 20.6% year-to-date.
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