Paramount seeks FCC approval for significant Middle Eastern investment stake.

Paramount is seeking approval from the Federal Communications Commission in the United States to allow a significant percentage of ownership in the company to be acquired by a sovereign wealth fund in the Gulf region, as part of its $81 billion acquisition of Warner Bros. Discovery deal. On Monday, the company, headed by David Ellison, submitted an application to the FCC requesting approval for the large stake by the Middle Eastern fund; the application stated that the proposed transaction would result in foreign investors indirectly holding nearly 50% of Paramount's shares. Paramount is the parent company of CBS, which owns 28 local television stations. Current FCC regulations prohibit foreign investors from owning more than 25% of a company with broadcast licenses unless the Commission determines that it is in the public interest. If the FCC refuses to grant a waiver, Paramount will be unable to access the funds from the sovereign wealth fund, and the Ellison family and RedBird Capital Partners will have to bear the full $81 billion themselves.