The US Federal Communications Commission has waived a rule limiting foreign ownership of broadcast media companies, allowing sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi to hold a combined 49.5% stake in Paramount if its proposed merger with Warner Bros. Discovery proceeds. The decision removes a major regulatory obstacle, but has prompted concerns that such a large investment could give foreign governments indirect influence over a major American media company.

The FCC said the investors would receive non-voting stock and therefore could not control licence-holding businesses, although Paramount had also sought permission for foreign ownership of up to 100%. Critics, including advocacy group Free Press and Democratic FCC commissioner Anna Gomez, argue that substantial financial stakes can still create influence over editorial and business decisions. The merger remains subject to an antitrust lawsuit brought by California and 11 other states, with a trial scheduled for next March.