Foreign Investments in Paramount-Warner Bros. Deal Under Review by European Union

Paramount Skydance CEO David Ellison speaks during the Bloomberg Screentime conference in Los Angeles on October 9, 2025.

Paramount CEO David Ellison PATRICK T. FALLON/AFP/Getty Images

European Union regulators are investigating financing from Middle Eastern sovereign wealth funds for Paramount Skydance‘s $111 billion bid to acquire Warner Bros. Discovery.

Saudia Arabi’s Public Investment Fund, the Qatar Investment Authority and Abud Dhabi Investment Authority are collectively providing roughly $24 billion to help finance the merger, according to SEC filings. For years, these funds have bankrolled global buyout firms, including Apollo Global Management, which is among the groups financing the offer. The deal was structured to provide capital through non-voting equity investments, meaning they don’t have any governance rights despite their 49.5% stake in the combined company.

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Under the foreign subsidies regulation, the commission is empowered to probe financial contributions of at least €250 million granted by non-EU governments to companies operating in the region. The law is intended to maintain competition when foreign investment comes into play. If the funding is found to be distortive, remedies can be imposed.

The commission set a July 14 deadline to waive the deal through or open a full probe of Paramount, which declined to comment.

The Federal Communication Commission is also reviewing foreign financing in the deal after the company petitioned for a waiver to allow the investors to own nearly half the combined company. Foreign ownership in companies that hold broadcast licenses are generally capped at 25%.

On Wednesday, the merger was approved by regulators in Australia and New Zealand. They found that the acquisition is “unlikely to have the effect of substantially lessening competition in relation to the wholesale supply of films for theatrical release in Australia,” Paramount said in a filing. While it would reduce competition, “the merged entity would continue to be constrained by other film studios post-acquisition.”

So far, regulators in Saudia Arabia, Ukraine, Serbia and North Macedonia have found that the deal doesn’t violate antitrust laws, posted Paramount legal chief Makan Delrahim. Foreign Direct Investment authorities in Germany, Italy, France, Romania, Slovenia, Belgium, Czechia and New Zealand have also cleared the merger.

“Unnecessary delay will only help the tech monopolies who are trying to dominate entertainment and protect their enormous market power to the detriment of creative talent and consumers,” he added.