A review by Team Telecom, a national security committee, cleared foreign investors from accessing personal data of US citizens, paving the way for the FCC to waive the 25% cap.
The FCC's media bureau issued the decision on Thursday, confirming foreign investors could now own up to 20% of the combined equity, but without voting rights.
The waiver allows foreign investors to own about 85% of the equity in the merged entity, with the Saudi Public Investment Fund slated to hold 15.1% and other sovereign wealth funds totaling 38.5%.
Despite the regulatory green light, a US judge has temporarily blocked the takeover pending a trial in March on a challenge filed by a dozen states, potentially delaying the merger timeline.
Paramount’s shares have traded in a narrow range, reflecting cautious optimism as investors weigh the merger’s potential to reshape content distribution and drive future earnings.
Analysts are monitoring the merger’s progress, noting that the combined entity could benefit from scale and cross‑platform synergies, but must navigate the pending legal challenge.