What Happened to Paramount Global Foreign Ownership Post-Merger?

The landscape of Paramount Global's ownership has undergone significant transformations, culminating in a substantial increase in foreign investment, particularly following its recent strategic maneuvers. Originally formed in December 2019 as ViacomCBS through the re-merger of CBS Corporation and Viacom, the company was controlled by National Amusements, Inc. (NAI), the holding company of the Redstone family. NAI maintained a dual-class share structure, holding approximately 77-80% of the Class A voting power despite a much smaller economic stake.

In February 2022, ViacomCBS was rebranded as Paramount Global, signaling a renewed focus on its iconic studio brand and streaming services. However, the company faced increasing pressure in a consolidating media market, leading to a strategic review of its future. This culminated in the merger with Skydance Media, led by David Ellison, which was finalized in August 2025. This deal effectively ended decades of Redstone family control, with the newly formed entity becoming Paramount Skydance Corporation.

The most recent and impactful development regarding foreign ownership stems from Paramount Skydance's ambitious acquisition of Warner Bros. Discovery (WBD), a deal valued at approximately $111 billion including WBD's debt. To finance this massive transaction, Paramount Skydance secured significant equity financing, notably from three Middle Eastern sovereign wealth funds: Saudi Arabia's Public Investment Fund (PIF), the United Arab Emirates' sovereign wealth fund (L'imad Holding Company), and the Qatar Investment Authority (QIA). These funds are collectively contributing around $24 billion, which is projected to result in foreign entities owning 49.5% of the combined Paramount Skydance-WBD company's equity.

This substantial foreign ownership presents a regulatory challenge in the United States. Under Section 310(b)(4) of the Communications Act of 1934, foreign entities are generally restricted from holding more than an indirect 25% equity or voting interest in a U.S.-organized entity that controls broadcast licenses, such as Paramount's CBS Television Network. Consequently, Paramount Skydance filed a petition with the Federal Communications Commission (FCC) on April 27, 2026, seeking a declaratory ruling to permit this increased foreign investment, arguing it serves the public interest by enhancing the company's ability to compete globally and access capital.

Despite the significant foreign equity stake, the Ellison family, along with RedBird Capital Partners, has structured the deal to retain full voting control. Foreign investors will hold non-voting Class B shares and will not have representation on the board, thereby limiting their influence over corporate governance and content decisions. This distinction between economic interest and voting control is crucial for navigating U.S. regulatory concerns, particularly those related to national security and potential foreign influence over news outlets like CBS News and CNN (post-WBD merger). The FCC's review is ongoing, but some officials have indicated a positive outlook, considering such filings as customary for large investments.