FCC Waived Foreign Ownership Limits for Media Merger
Broadcasters must note how regulatory waivers for non-voting equity stakes may shift capital access in media.
Updated on Sept. 18, 2026 in Media
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The FCC has waived its 25 percent foreign equity ownership limit to allow sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi to acquire a 49.5 percent stake in the Paramount-Warner Bros. merger. The agency determined that the absence of voting rights prevents foreign control over licensees.
Why it matters
This ruling establishes a regulatory precedent for how media companies can structure equity to access international capital while maintaining domestic license compliance. By isolating ownership from management influence through non-voting stock, the FCC has provided a roadmap for firms seeking larger foreign investment.
The FCC authorized a 49.5 percent foreign ownership stake for sovereign wealth funds, nearly doubling the agency's established 25 percent threshold. The ruling explicitly applies to non-voting stocks in the Paramount-Warner Bros. merger.
The players
FCC
The independent government agency responsible for regulating interstate and international communications in the U.S.
Anna Gomez
An FCC commissioner who opposed the waiver ruling regarding foreign equity ownership limits.
Free Press
A public interest advocacy organization focused on media policy and open communication infrastructure.
The details
The FCC granted the waiver on the condition that the foreign-owned equity carries no voting power, ensuring that domestic operators retain control over broadcast licenses. While the agency allows this increased financial interest, opponents including Commissioner Anna Gomez and the advocacy group Free Press argued against the move. This structure effectively separates investment participation from operational governance.
Timeline
September 18, 2026: The FCC announced the foreign ownership waiver ruling.
Market Landscape
This decision creates a clear regulatory path for media companies to bypass the long-standing 25 percent foreign equity ownership limit by utilizing non-voting shares. It signals an evolving interpretation of foreign influence within U.S. media conglomerates.
Operators in the media sector should track whether this non-voting equity structure becomes a standard model for securing foreign capital in regulated industries. Consult with counsel to determine if your current licensing agreements allow for similar capital-raising instruments under this new guidance.
The takeaway
The FCC’s waiver underscores that non-voting stock can be a powerful tool for navigating restrictive foreign investment caps. Operators should evaluate their own license compliance and capital structures to see if non-voting equity could unlock similar investment opportunities for their growth.
Further reading
For broader context on how regulatory shifts impact industry consolidation, see the Media section.
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Should foreign governments be allowed to hold significant ownership stakes in American media companies?
