The Federal Communications Commission yesterday approved Paramount Skydance’s plan to sell large equity stakes to the sovereign wealth funds of Saudi Arabia, the United Arab Emirates, and Qatar.

Under US law, companies with licenses to run broadcast stations need FCC approval to have direct or indirect foreign ownership exceeding 25 percent of the company’s stock. Paramount says its indirect foreign ownership will reach 49.5 percent after it receives investments from the sovereign wealth funds and filed a petition asking the FCC to waive the foreign ownership limit.

Paramount, the owner of CBS, holds FCC licenses for the 28 local CBS stations that it owns and operates. Paramount is buying Warner Bros. Discovery in a $111 billion deal that is being partially financed with foreign investment but hasn’t completed the acquisition because US states filed a lawsuit that aims to block the merger. Trump’s Department of Justice approved the merger.

The FCC is letting Paramount sell indirect ownership stakes to “some of the most repressive governments in the world,” FCC Commissioner Anna Gomez, the only Democrat on the commission, said yesterday. “An investment this large in one of America’s biggest media companies doesn’t just buy equity, it secures influence over what gets said and what gets made.”

The Paramount/Warner deal would combine two of the largest movie studios, merge streaming service Paramount+ with HBO Max, and give Paramount ownership of CNN and other TV channels.

“The funds plan to invest $24 billion in the Paramount/Warner deal,” the Los Angeles Times wrote. “Saudi Arabia’s Public Investment Fund is set to contribute $10 billion, while the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co. will separately add $7 billion.”