Expanding Restrictions on Foreign Investment in US Tech and Telecom: Investors Beware!

A recent spate of restrictions on foreign investment in the US technology and telecommunications industries can significantly affect investors' value proposition. Investors need to understand whether they—or the companies in which they invest—are subject to these restrictions and assess how complying with them might affect transaction timelines and valuations. These restrictions include:

• Team Telecom revamp for providing executive branch input on foreign investment in FCC license holders.
• CFIUS expansion, including mandatory filings for some foreign investments in US assets.
• More stringent import/export and procurement rules related to the manufacture, purchase, sale, and use of telecom equipment or components from China.