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The Federal Communications Commission on Thursday granted Paramount Skydance’s request to allow Middle Eastern royal families to hold a substantial stake in a merged Paramount-Warner Bros. Discovery.

The sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi are slated to indirectly own nearly 50% of the equity in David Ellison’s proposed mega-studio, Paramount-Warner Bros. That will give them a hefty stake in CBS, CNN, Comedy Central, HBO and two historic Hollywood film studios.

Ellison needed FCC approval because the deal will change the ownership structure of CBS.

As part of the Communications Act of 1934, Congress placed restrictions on foreign ownership of broadcast outlets because of concerns about national security. Current rules prevent foreign investors from owning more than 25% of a company that holds a U.S. broadcast license — unless the FCC determines that foreign ownership would serve a public interest.

CBS owns more than two dozen TV stations with FCC licenses, including KCBS-TV Channel 2 and KCAL-TV Channel 9 in Los Angeles.

“Upon review of [Paramount’s] Petition and consideration of the record of this proceeding, we find that the public interest would be served by granting the Petition,” FCC said in its ruling, noting that Paramount has said the proposed ownership changes would “not result in a transfer of control of Paramount.”

Instead, “Ellison family will retain a majority of the voting interests and control of Paramount,” the FCC said.

FCC Chairman Brendan Carr, an appointee of President Trump, has been supportive of Paramount’s takeover of Warner Bros. Trump and his lieutenants, including Defense Secretary Pete Hegseth, have been cheering for Ellison to control CNN, a Warner property.

Anna M. Gomez, the lone Democratic FCC commissioner, slammed the agency’s decision, saying it “just let some of the most repressive governments in the world indirectly control nearly all of a combined Paramount-Warner Bros.”

“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,” Gomez said. “That’s why I called for this new and novel issue to go to a full commission vote given what’s at stake. Instead, the FCC snuck this ruling out as a staff-level decision, with no public vote and no accountability for a call of this magnitude.”

Ellison’s billionaire father, Oracle co-founder Larry Ellison, in February agreed to personally guarantee the $47 billion in equity needed to buy out Warner Bros. Discovery’s existing shareholders for $81 billion. Ellison and longtime Skydance investor, RedBird Capital Partners, then entered into agreements to assign some of their purchase rights to the sovereign wealth funds.

The funds plan to invest $24 billion in the Paramount-Warner deal. 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.

Paramount has separately lined up debt financiers to help pull off the leveraged buyout of Warner Bros. Discovery — Hollywood’s biggest merger in decades. The deal has been stalled by an antitrust challenge brought by California Atty. Gen. Rob Bonta and 11 other Democratic attorneys general, representing such states as New York, New Jersey, Colorado, Nevada and Oregon.

The foreign ownership rule was adopted nearly a century ago because members of Congress wanted to make sure that hostile foreign players were barred from using U.S. airwaves to spread propaganda, particularly in times of war.

“We appreciate the FCC’s careful review and are pleased that it has granted Paramount’s petition,” Paramount said in a statement, adding the Trump administration’s Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector had separately recommended approval of the deal, subject to several conditions to protect the data of the company’s U.S. based consumers.

Paramount said that, once the deal closes, the Ellison family and RedBird would “collectively hold the largest equity stake in the combined company and 100% of the voting shares, with no other equity participant having any governance rights.”

Paramount has two classes of stock — an ownership structure that will be replicated in a merged Paramount-Warner Bros.

The Ellison family owns 77.5% of Paramount’s voting Class A common stock. RedBird indirectly holds the remaining 22.5% of the Class A shares. The Ellison family separately has 40% of the non-voting Class B shares.

“At a time when the media industry faces unprecedented competitive pressure from dominant big tech companies, a combined Paramount-WBD will have the scale and resources necessary to compete, invest, innovate, and deliver premium content to audiences worldwide,” Paramount said in its statement.

The video is titled “Jimmy Kimmel’s Interview With James Talarico That the FCC Doesn’t Want You to See.”

It was posted Thursday night on the “Jimmy Kimmel Live!’s” YouTube page. By 10 a.m. Friday, the video had gained more than 2.7 million views — and the interview hadn’t aired on the show’s network, ABC.

“… We are being targeted by the FCC for the crime of interviewing political candidates,” Kimmel says in the YouTube clip. “Even though for years we, and every other late-night talk show, have welcomed numerous candidates, including Donald Trump when he was running. He was on this show two times. [Trump’s] FCC has threatened me, threatened our show, threatened our network, ABC, our affiliates, our local stations, because they want to make our editorial decisions for us, which of course, we cannot accept.”

The host continued: “Tonight we are bypassing the public airwaves and hosting this interview on YouTube, even though our government would clearly prefer we not do it at all.”

The late-night host moved his interview with the Democratic candidate for U.S. Senate in Texas online to sidestep new Federal Communications Commission policy regulations.

Kimmel said earlier in the week that the FCC had “threatened” his show.

“For the whole 20-plus years of our show, in fact, I’ve been interviewing Americans who are running for office with no problem,” Kimmel said during Wednesday’s ABC broadcast. “Something has changed,” he said.

The change Kimmel was referring to involves the Communications Act’s “equal opportunities” requirement. It states that if a broadcast station features a qualified political candidate, it must provide equal airtime to an opposing candidate. Daytime and late-night talk shows have long operated under a “bona fide news program” exemption that shielded them from the equal time rule.

But under new guidance from the FCC Media Bureau, which is overseen by Donald Trump appointee Brendan Carr, talk shows may no longer qualify for the news exemption if their candidate interviews are determined to be motivated by partisan purposes.

In short, political bias is in the eye of the FCC beholder, and it has been focused on shows like “Kimmel Live!” and “The View,” which voice criticism of the president. The FCC has ordered early license reviews for several Disney-owned ABC stations. ABC has accused the Trump administration of trying to chill free speech.

FCC Commissioner Anna Gomez, who is the commission’s only Democrat, said Thursday in a statement that Kimmel’s choice to move Talarico’s interview to YouTube “shows just how far this Administration’s campaign of censorship and control has gone.”

The YouTube summary of the Kimmel/Talarico interview reads as follows: “Jimmy’s interview with Democratic Senate candidate from Texas James Talarico was not televised because of threats from the FCC so we’re hosting their discussion here on YouTube. James talks about Republicans being scared of him winning, Jesus being co-opted by MAGA, the RNC Convention being held in Texas, not taking money from corporate PACs, Trump calling him a ‘freaky guy’ and having second thoughts about endorsing his opponent Ken Paxton, and the GOP making it harder for people to vote.”

Assistant White House Press Secretary Davis Ingle accused Kimmel of “play acting” and “creating a false narrative about this administration’s policies,” in a statement Thursday. “Chairman Carr has not threatened him regarding interviewing James Talarico, or any other candidate,” Ingle said. “Any media outlet blindly amplifying Kimmel’s egocentric delusion should insist on proof. Of which they will find none.”

Unless they spend 10 seconds on Google, where there’s ample proof.

During a February taping of “The Late Show With Stephen Colbert,” Colbert told his studio audience that CBS lawyers had prohibited him from broadcasting an interview with Talarico, or even mentioning the cancellation on television, following threats from the FCC.

“[Talarico] was supposed to be here, but we were told in no uncertain terms by our network’s lawyers, who called us directly, that we could not have him on the broadcast,” Colbert said.

CBS denied they stopped “The Late Show” from airing the interview, which was instead posted on the show’s YouTube page.

Within months, “The Late Show” was canceled after 33 years on the air. Its final broadcast was May 21.

During Kimmel’s interview with Talarico, the host pointed out that it wasn’t the first time an interview with Talarico had been “demoted” from network television to YouTube. He asked his guest, “Why are they so scared of you?”

“They’re worried that we’re going to win this race in Texas,” Talarico said about running against Republican Ken Paxton.

The race will be decided in November.

“We’re not just going up against the most corrupt politician in Texas,” Talarico said. “We’re going up against this entire corrupt system.”

ABC comedian Jimmy Kimmel’s interview with Texas Senate candidate James Talarico won’t air on broadcast television amid the network’s high-stakes skirmish with the Federal Communications Commission.

Kimmel, during his Wednesday night monologue, said his talk with the 37-year-old Texas Democrat would instead stream on his show’s YouTube channel — depriving ABC viewers and TV stations of a potentially newsworthy interview with Talarico, who has been surging in the polls.

The Texas race is shaping up as a key contest in what could help decide control of the U.S. Senate in the mid-term elections.

Talarico is running against Texas Republican Atty. Gen. Ken Paxton, who has been endorsed by President Trump.

Kimmel alluded to the Walt Disney Co. network’s ongoing dispute with FCC Chairman Brendan Carr as the reason for the switch. This spring, Carr’s Media Bureau ordered ABC to submit to an early review of its TV station licenses for Disney’s eight owned stations. The FCC launched the review a day after President Trump demanded Kimmel be fired after First Lady Melania Trump became upset over a joke the comedian told on his program, “Jimmy Kimmel Live!”

ABC has since sued the FCC, alleging Trump’s disdain for Kimmel and other ABC programs has fueled the FCC’s heavy-handed approach to the network, in violation of its 1st Amendment rights.

Kimmel pointed to the “unusual circumstances” in his monologue.

“For the whole 20-plus years of our show, in fact, I’ve been interviewing Americans who are running for office with no problem at all, just like [David] Letterman did, [Jay] Leno did, Arsenio [Hall], etc. etc.,” Kimmel said. “I’ve interviewed a lot of political candidates — from Hilary Clinton to Ted Cruz to Donald Trump.”

But, Kimmel said that in the current climate, airing the Talarico interview on the public airwaves carried too much risk.

“Out of consideration for our local stations, especially our ABC affiliates in Texas who would have to deal with this nonsense,” the ABC interview, which was scheduled for Thursday, would instead play on YouTube, he said.

ABC declined to comment. An FCC spokesperson did not immediately respond to a request for comment.

The issue surfaced nearly one year after a major dust-up when ABC temporarily benched Kimmel after comments he made on his show over the shooting of conservative activist Charlie Kirk. During that episode, Carr seemed to threaten Disney by saying that Kimmel should be punished.

“We can do this the easy way or the hard way,” Carr said. “These companies can find ways … to take action … on Kimmel or there is going to be additional work for the FCC.”

Two station groups removed Kimmel’s show, but ABC eventually stood by the comedian returning him to his perch the following week.

The Disney-owned station licenses were not set to expire for several years when the FCC demanded that Disney defend its stewardship of the outlets. The license for Disney’s KABC-TV Channel 7 in Los Angeles extends to 2030 but it is now being challenged.

The Burbank giant has asked a federal judge to issue a temporary restraining order and injunction to halt the FCC’s early station review.

ABC also is defending against an FCC probe into whether its daytime talk show, “The View,” should be entitled to an exemption from the so-called equal-time rule for political candidates who appear as guests.

Carr has challenged the status of “The View,” arguing that the topical chat show is not a bona fide news program and, thus, should not be entitled to the exemption.

The same issue tripped up former CBS late night comedian Stephen Colbert who interviewed Talarico in February — before his program, “The Late Show with Stephen Colbert, was canceled.

At the time, Colbert told viewers CBS lawyers forbid him from airing a Talarico interview on his program due to the FCC’s increased scrutiny of exemptions to the equal-time rule, an allegation that CBS disputed.

But Colbert’s interview played on the program’s YouTube channel — not the CBS network.

The FCC has said it was investigating ABC stations over whether the company’s diversity and inclusion policies are in violation of the Communications Act of 1934 and the agency’s rules, including its “prohibition on unlawful discrimination.”

Last week, the FCC asked a federal judge in Washington to dismiss ABC’s 1st Amendment lawsuit, calling Disney’s challenge to the early review “meritless” because the commission hasn’t made a decision on whether to escalate the matter or rescind Disney’s station licenses.

Kimmel ended his monologue, saying he was grateful for the YouTube channel “because in the America we live in right now, that is the best that we can do until November.”

The Federal Communications Commission has asked a judge to toss out ABC’s 1st Amendment lawsuit, arguing that parent company Walt Disney Co. is wrongly attempting to short-circuit the agency’s review into whether the broadcaster has violated the law.

The commission, in court documents, maintains ABC’s lawsuit was premature because regulators simply were in the process of reviewing whether ABC has served the public interest in operating its eight television stations. No final determination has been reached, the FCC argued.

FCC Chairman Brendan Carr made the rare move last spring to call for an early review of ABC’s licenses as part of his yearlong look at whether Disney’s diversity and inclusion programs violate anti-discrimination laws.

The Disney-owned station licenses were not set to expire for several years. For example, the license for KABC-TV Channel 7 in Los Angeles extends to 2030.

But the FCC launched the probe a day after President Trump complained about ABC late night comedian Jimmy Kimmel over a joke that upset First Lady Melania Trump.

ABC has taken an aggressive stance, arguing the FCC is wielding its enforcement powers to punish the network after Trump repeatedly agitated to have ABC’s licenses revoked. ABC maintains the FCC’s enforcement action is an attempt to quell the network’s free speech, in violation of the 1st Amendment. It asked a federal judge to issue a temporary restraining order and injunction to halt the FCC’s early station review.

ABC also is fighting an FCC review into whether its daytime talk show, “The View,” should be entitled to an exemption from the so-called equal-time rule for political candidates who appear as guests.

Disney’s lawsuit has enormous 1st Amendment implications.

ABC is the first major broadcaster to challenge the FCC’s enforcement actions since Trump returned to power, joining a small handful of news organizations, including the Associated Press and the Wall Street Journal, that have pushed back against the president’s efforts to bully outlets he dislikes.

In late December, Trump wrote on social media: “If Network NEWSCASTS, and their Late Night Shows are almost 100% negative to President Donald J. Trump, MAGA, and the Republican Party, shouldn’t their very valuable Broadcast Licenses be terminated? I say YES!”

ABC, which did not comment Friday, argued the FCC’s review is “extraordinarily early” and “that timing underscores the Commission’s true purpose: coercing and retaliating against a network that refuses to bow to the Administration’s demands.”

The FCC has scoffed at the broadcaster’s arguments.

“Disney filed a meritless lawsuit in an effort to stop the FCC’s ongoing investigation into allegations that Disney violated the law,” an FCC spokesperson said in a statement. “The FCC has developed a voluminous record, and it will continue to follow the facts and the law wherever they lead.”

The government filed its motion Thursday in Washington. The 46-page document was filed by U.S. Atty. Jeanine Pirro and signed by Assistant U.S. Atty. Dimitar P. Georgiev on behalf of the FCC.

Disney was “not content to let the Commission’s ordinary investigative processes (and, if needed, ordinary processes of judicial review) run their course. They instead ask this Court to halt the license renewal proceeding in its tracks by issuing a preliminary injunction,” the FCC said.

U.S. District Judge Loren L. AliKhan has scheduled an Oct. 6 hearing.

Disney has argued the FCC has gone well beyond an examination of its internal hiring practices — the original purpose of the agency’s review.

But, in its motion, the FCC faulted Disney’s handling of the matter, saying “Disney’s responses to Commission information requests were deficient and nonresponsive,” prompting the agency to escalate the dispute.

In late April, Carr directed the FCC Media Bureau to force ABC to apply for renewal of their licenses early.

“The Commission’s Chairman has repeatedly emphasized that, although the allegations against Disney are serious, he and the agency remain ‘open-minded,’ have ‘not made a decision,’ and are ‘going to follow the facts and the law wherever they [lead],’ ” according to the motion.

The FCC also argued Disney picked the wrong court because Congress stipulated that any review of commission orders should be heard by an appeals court.

If ABC lost its licenses, it would hobble the network by forcing its largest stations off the air. Other ABC stations at risk include those in San Francisco, Fresno, Houston, Philadelphia and New York.

KABC-TV Channel 7 is owned by Disney in Glendale.

(Gina Ferazzi/Los Angeles Times)

Trump on Sunday called for the FCC to “rebuke or punish” NBC’s “Meet the Press” anchor Kristen Welker after she pointed out that the president has had mixed success in endorsing political candidates in this election season.

The FCC also has an open investigation against NBC owner Comcast, also looking at the Philadelphia company’s diversity and hiring practices. The FCC has not ruled out calling NBC-owned station licenses in for an early review as well.

Sept. 4 (UPI) — The Federal Communications Commission asked a federal court to dismiss a lawsuit from ABC claiming the commission was curbing its right to free speech.

The Walt Disney Company and its subsidiary ABC sued the FCC on Aug. 18 to block an early license renewal from the agency, claiming the Trump administration is attacking the company for content it doesn’t like.

The FCC argued in its motion that the lawsuit is premature because the agency hadn’t yet tried to remove the licenses from eight local stations that ABC owns. In April, the FCC called for an early review of the licenses, an unusual move. None of the licenses were up for renewal for several years.

The FCC claims it asked for the early review because of ABC’s response investigation into the company’s diversity, equity and inclusion hiring policies. But the review came right after President Donald Trump told ABC to fire Jimmy Kimmel after a joke about First Lady Melania Trump.

The eight stations with their licenses are in jeopardy cover New York, Los Angeles, Chicago, Philadelphia, Houston, San Francisco, Raleigh-Durham, N.C., and Fresno, Calif. They renew their licenses every eight years and are almost never revoked. The FCC hasn’t filed an early-renewal order in decades.

“This [lawsuit] would only hobble the Commission’s efforts to investigate and resolve serious allegations that Disney has engaged in unlawful discrimination, and from otherwise ensuring that Disney’s stations are serving the public interest,” the FCC wrote in its filing. “Plaintiffs, in return, would only free themselves from the burdens of proving their case in administrative proceedings.”

“They have shown (at most) minimal and self-inflicted effects on speech, and no harms that could justify” blocking the agency’s moves, the FCC’s document said.

ABC had filed for an emergency stay of the FCC’s activity, arguing it was using the regulatory process to suppress its right to free speech.

ABC in its filing said that President Donald Trump is sending a “message to every media company in the country — that they should “tell only the stories the Administration deems favorable, or face the coercive machinery of the federal government.”

“In such a world, the press could in no way be described as free,” ABC wrote. “The FCC Chairman [Brendan Carr] has left little doubt that this is his goal.”

Judge Loren L. AliKhan scheduled a hearing for the week of Oct. 5.

President Trump lashed out Sunday at NBC’s “Meet the Press” moderator Kristen Welker, calling on the Federal Communications Commission to punish her over comments she made about the president’s record in endorsing primary candidates.

“Kristen Welker, the Unpopular ‘Hostess’ of the once great Meet the Press, now considered Meet the Fake Press, just stated that Donald Trump has ‘mixed results’ on his Endorsements of Candidates, when the recent WINS of Darline Graham and Mike Mazzei, stand at 100% for the U.S. Senate, and 98% for the U.S. House, recently and over the longterm,” Trump wrote on Truth Social.

Trump actually endorsed Mazzei in the Oklahoma governor’s race, not a congressional seat.

“How can anyone be allowed to say this, working for freely given Public Airwaves?” Trump added. “Because of this purposeful inaccuracy, she will be reported to the FCC for rebuke or punishment.”

Welker was previewing Sunday’s edition of “Meet the Press” on NBC’s Washington station WRC when she made the remarks about Trump’s endorsements.

“He’s going to loom large over these midterms,” Welker said. “There’s no doubt about that. He, of course, has endorsed a slate of candidates in the primaries. He’s had some mixed results, but most recently, his pick of Senator Darline Graham, of course, the sister of the late Senator Lindsey Graham, was successful in her primary battle, so now she takes on Dr. Annie Andrews in South Carolina.”

In a statement, NBC News expressed its support for Welker. “Kristen is one of the best in the business and we stand by her,” a representative said in a statement.

FCC Chairman Brendan Carr has shown a willingness to use his agency’s levers to go after broadcast media outlets Trump deems unfriendly. In April, he called for an early review of the TV station licenses held by ABC, claiming the company’s diversity and inclusion policies are in violation of federal anti-discrimination laws.

ABC has filed a lawsuit against the FCC to block the review, saying it was motivated by Trump’s animus toward the late-night host Jimmy Kimmel.

Going after Welker for an anodyne analysis that did not match the president’s perception of his endorsement results would be a stretch, according to the FCC’s own guidelines.

“The FCC’s authority to take action on complaints about the accuracy or bias of news networks, stations, reporters or commentators in how they cover — or sometimes opt to not cover — events is narrow,” according to the FCC website. “The agency is prohibited by law from engaging in censorship or infringing on First Amendment rights of the press.”

Anna Gomez, the lone Democratic member of the FCC, said Trump’s comments are dangerous and also demonstrate a fundamental lack of understanding of the agency’s role.

“As I’ve said many times, the FCC has no authority to punish journalists this administration doesn’t like,” Gomez wrote on the social platform X. “These threats to press freedom are dangerous. They undermine the foundation of our democracy, and they have no place in it.”

Trump is clearly sensitive about critiques of his endorsement powers. On Friday, Bill Maher did a lengthy segment on his show “Real Time,” apologizing to the president for having said “almost none” of his endorsed candidates are winning their primaries. Maher noted that out of 260 candidates endorsed by Trump, only nine have lost. Maher noted that many of those candidates were heavy favorites to win but agreed that his statement was not accurate.

Maher also gave a strong indication that Trump had texted him to express his unhappiness over his comments.

But “Real Time” is on cable and streaming where the FCC has no say on programming content. The agency regulates broadcast channels that are delivered over the public airwaves.