Hollywood
Paramount seeks FCC nod for foreign-backed $110 billion WBD deal
Gulf funds back merger as foreign stake nears 50 per cent, control stays with Ellison
NEW YORK: Paramount Global has approached the Federal Communications Commission seeking approval for foreign investments tied to its proposed $110 billion acquisition of Warner Bros. Discovery, marking another key step in one of the biggest media deals in recent years.
According to regulatory filings made public this week, the investment backing the deal includes major Gulf sovereign funds such as the Public Investment Fund, the Qatar Investment Authority and L’imad Holding Company. Together, foreign investors are expected to hold just under 50 per cent of Paramount’s equity once the transaction is complete.
Despite the sizeable international backing, Paramount has made it clear that voting control will remain with the family of chief executive David Ellison, ensuring the company stays firmly under US control as required by broadcasting rules.
A company spokesperson described the FCC filing as routine for transactions involving foreign capital and stressed that it does not impact the closing of the deal. Under US law, any significant foreign ownership in broadcast licence holders must undergo regulatory review.
The merger itself has already cleared a major hurdle, with Warner Bros. Discovery shareholders approving the deal on 23 April. The transaction values the company at $31 per share, a 147 per cent premium to its earlier trading price, reflecting strong strategic intent behind the tie-up.
If completed, the combined entity will bring together a vast portfolio including Warner Bros. film studios, HBO Max, and networks such as CNN, TNT and Discovery Channel. The deal is currently expected to close in the third quarter of 2026.
However, scrutiny is intensifying. The US Department of Justice has issued subpoenas seeking details on the merger’s potential impact on cinema competition, streaming services and content licensing. Reviews are also anticipated in international markets, including the United Kingdom.
There is also a financial safety net built into the agreement. If regulators ultimately block the deal, Paramount would face a $7 billion break-up fee. Additionally, the company has taken on $2.8 billion in obligations previously owed by Warner Bros. Discovery to Netflix following an earlier terminated arrangement.
Paramount maintains that easing foreign ownership barriers will unlock fresh capital and strengthen its ability to compete in a rapidly evolving media landscape. For now, the spotlight remains on regulators, whose decision will determine whether this global media consolidation moves from script to screen.
Hollywood
Utopai Studios partners Huace to deploy PAI for long form content
Deal includes revenue sharing as Huace adopts AI engine across global ops
MUMBAI: Lights, camera… algorithm, the script just got a silicon co-writer. In a move that signals how storytelling itself is being re-engineered, U.S.-based Utopai Studios has partnered China’s Huace Film & TV Co. Ltd. to bring artificial general intelligence into the heart of long-form content creation.
At the centre of the deal is PAI, Utopai’s cinematic storytelling system, which Huace will deploy as a core engine across its production pipeline from development and creative iteration to global localisation. The partnership includes a large-scale annual usage commitment from Huace, alongside a usage-based revenue-sharing model, underscoring both ambition and commercial confidence on both sides.
For Huace, one of China’s largest film and television companies, the bet is not on automation alone but on scale with control. With distribution spanning over 200 countries and a presence across more than 20 international platforms, including Netflix and YouTube, the company brings a vast content ecosystem where even marginal efficiency gains can translate into significant output shifts. Its extensive TV IP library further positions it as fertile ground for AI-assisted storytelling workflows.
The choice of PAI follows what Huace described as a rigorous evaluation of existing AI tools, many of which remain limited to fragmented use cases such as video generation or editing. What tipped the scales, according to the company, was PAI’s ability to handle long-form narrative complexity maintaining continuity, structure, and creative coherence across entire story arcs rather than isolated clips.
Utopai, for its part, is using the partnership to anchor its international expansion strategy, pitching PAI as an enterprise-ready system built for customisation, privacy, and regulatory adaptability across markets. That positioning becomes particularly relevant as global media companies increasingly scrutinise how AI integrates into proprietary workflows.
The timing is notable. Earlier this month, Utopai upgraded PAI to support three-minute 4K video generation and advanced multi-shot sequencing features designed to tackle one of AI storytelling’s biggest hurdles: consistency across scenes.
What emerges is not just another tech collaboration, but a glimpse into how the grammar of filmmaking could evolve. Because if stories were once crafted frame by frame, the next chapter might just be coded scene by scene.
