{"id":404,"date":"2026-05-21T10:05:50","date_gmt":"2026-05-21T10:05:50","guid":{"rendered":"https:\/\/relocationobserver.com\/?p=404"},"modified":"2026-05-21T10:05:50","modified_gmt":"2026-05-21T10:05:50","slug":"senate-democrats-implore-fcc-chair-to-conduct-rigorous-review-of-paramount-warner-bros-merger-foreign-investment-deal-raises-national-security-alarms","status":"publish","type":"post","link":"https:\/\/relocationobserver.com\/?p=404","title":{"rendered":"Senate Democrats Implore FCC Chair to Conduct \u2018Rigorous\u2019 Review of Paramount-Warner Bros. Merger Foreign Investment: Deal \u2018Raises National Security Alarms\u2019"},"content":{"rendered":"
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\n\tDemocratic senators are again urging the FCC to not rubber-stamp Paramount Skydance\u2018s proposed $111 billion takeover of Warner Bros. Discovery \u2014 citing concerns over foreign investors, including Middle Eastern wealth funds, that are backing the pact.<\/p>\n

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\n\tThe pending Paramount-WBD merger \u201craises national security alarms,\u201d according to the senators, led by U.S. Sen. Maria Cantwell (D-Wash.), the ranking member of the Senate Committee on Commerce, Science and Transportation. The group sent a letter May 20 to FCC Chairman Brendan Carr outlining their concerns. That came after another group of Senate Democrats sent the agency chief a similar letter two months ago.<\/p>\n

\n\tThe crux of their misgivings: In April, Paramount disclosed in an FCC filing that the merged Paramount-WBD would be\u00a049.5% owned by foreign investors, with about 38.5% of the equity in the new company owned by the\u00a0sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. Paramount\u2019s filing seeks a declaratory ruling by the FCC permitting that foreign ownership \u2014 and in fact, asked the agency to authorize up to 100% foreign equity ownership in its broadcast licensees. Congress set a 25% limit on direct foreign ownership of American TV and radio stations.<\/p>\n

\n\t\u201cThe scale, concentration and scope of this proposal raise serious questions,\u201d the senators wrote. \u201cForeign governments hostile to a free and independent press could exert unprecedented influence over a media conglomerate vital to American journalism and culture.\u201d<\/p>\n

\n\tThey continued, \u201cIf the filing is approved, Saudi, UAE and Qatari sovereign investment funds would have significant influence over a number of the most significant and impactful news reporting and investigative journalism outlets in the United States, including CNN, CBS News, 60 Minutes, and 28 local Paramount-owned television stations in 17 of the country\u2019s largest media markets.\u201d<\/p>\n

\n\t\u201cParamount\u2019s petition asks for an unprecedented degree of foreign control of U.S. broadcasting,\u201d the senators wrote. \u201c[W]e have serious doubts that paving the way for these anti-democratic governments to own between 49.5% and 100% of an American media empire serves the \u2018public interest.\u2019\u201d<\/p>\n

\n\tCarr, at a press conference earlier Wednesday following the FCC\u2019s monthly open meeting, acknowledged that the Paramount-WBD deal has \u201csome foreign investment or foreign dollars that are involved in being invested in CBS to complete the purchase. And so we are running regular course process on that. So we put out a public notice to seek comment on that foreign investment.\u201d <\/p>\n

\n\tCarr added, \u201cMy understanding is there is a role for CFIUS,\u201d referring to the U.S.\u2019s intra-agency Committee on Foreign Investment in the United States, which reviews foreign investments in American businesses for potential national security risks. CFIUS, Carr said, \u201cwill ultimately make an up-or-down decision on that foreign investment. But the transaction itself isn\u2019t going to come before the FCC, other than that foreign-ownership piece.\u201d<\/p>\n

\n\tThe Treasury Department, which leads CFIUS, has not confirmed that it is reviewing the Paramount-WBD transaction. In March, Democratic Sens. Elizabeth Warren and Richard Blumenthal criticized the Trump administration for failing to initiate a CFIUS review of the deal. Paramount has said that the Gulf States backing the WBD deal would not be given board representation and that, therefore, CFIUS review is not warranted. The Ellison family and RedBird Capital Partners would collectively hold the largest equity stake in the combined company and continue to hold 100% of the voting shares, according to Paramount.<\/p>\n

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\n\tMeanwhile, at the May 20 meeting, Democratic FCC Commissioner Anna Gomez said that what Paramount\u2019s petition is asking for is \u201cvery serious.\u201d Earlier this month she had called for the FCC to conduct a \u201cvigorous\u201d review\u00a0of the foreign investment in the proposed Paramount-WBD pact.<\/p>\n

\n\t\u201cThese are not just some foreign companies. These are sovereign wealth funds controlled by countries that are not friendly to the press,\u201d Gomez said. \u201cAnd Paramount has said, \u2018Give us up to 100% foreign ownership.’\u201d Because the Middle Eastern funds would have indirect ownership stakes, under the statute, the FCC can waive the limit on foreign government ownership \u2014 \u201cbut it doesn\u2019t mean we should,\u201d Gomez said.<\/p>\n

\n\tOthers signing on to the May 20 letter to Carr were Sens. Edward J. Markey (D-Mass.), Ben Ray Luj\u00e1n (D-N.M.) John Hickenlooper (D-Colo.), Andy Kim (D-N.J.) and Warren. The full text of the letter is at .<\/p>\n

\n\tThe lawmakers pointed out that the FCC has never before allowed a sovereign wealth fund to hold a significant ownership stake of a U.S. broadcaster. They also noted that Carr in 2024 expressed concerns about foreign ownership of TikTok, and he also opposed a transfer of radio stations because of a lack of plans to \u201cwall off the unvetted foreign interests.\u201d<\/p>\n

\n\tBut Carr \u201cappears to have no such concerns about this deal,\u201d according to the Democratic senators. They cited an interview Carr gave to CNBC in March in which he said about the proposed Paramount-WBD merger, \u201cI think this is a good deal, and I think it should get through [FCC review] pretty quickly.\u201d In the letter to Carr, the senators said, \u201cThese comments raise questions about your impartiality and the rigor of the Commission\u2019s review of this unprecedented foreign investment.\u201d<\/p>\n

\n\tThe senators also referenced an unconfirmed report that China\u2019s Tencent was among the investors in Paramount\u2019s WBD bid. In December, Paramount said Tencent, which had committed $1 billion to the Paramount Skydance bid, was no longer a financing partner because of the WBD board\u2019s concerns over foreign ownership. In March,\u00a0Bloomberg reported that Tencent was back on board as an investor in the deal with fresh funding.<\/p>\n

\n\tAbout the reported involvement of Tencent, the senators wrote, \u201cAllowing our most significant global adversary to partly own Paramount or a combined new entity that will own CNN and CBS News would risk our national security.\u201d<\/p>\n

\n\tThe lawmakers posed the following questions to Carr, requesting answers and documents by June 5:<\/p>\n

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  1. Will you commit to a comprehensive review by Team Telecom, especially given the unprecedented risks to press freedom posed by the proposed equity investors?<\/em><\/li>\n
  2. Will the Commission and Team Telecom specifically review Tencent\u2019s role in the transaction and equity stake in Paramount?<\/em><\/li>\n
  3. Will you commit to voting on Paramount\u2019s request to raise its foreign ownership at the Commission level? If not, why?<\/em><\/li>\n
  4. Do you believe that foreign ownership of between 49.5% and 100% of Paramount, contemplated by the filing, would mean that the Middle Eastern sovereign wealth investment funds would have effective control or influence over decision making?<\/em><\/li>\n
  5. What specific assurances have the Saudi, Emirati, and Qatari sovereign wealth funds, and Tencent, provided the Commission that they will not attempt to influence the editorial, journalistic, or content decisions at Paramount, either by suppressing reporting and creative content unfavorable to their governments or by promoting content that runs contrary to American interests or values? Please provide all related documents.<\/em><\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Several Democratic senators are again urging the FCC to not rubber-stamp Paramount Skydance’s proposed $111 billion takeover of Warner Bros. Discovery — citing concerns over foreign investors, including Middle Eastern wealth funds, that are backing the pact.<\/p>\n","protected":false},"author":1,"featured_media":403,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[432,433,434],"class_list":["post-404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tv","tag-fcc","tag-paramount-skydance","tag-warner-bros-discovery"],"yoast_head":"\nSenate Democrats Implore FCC Chair to Conduct \u2018Rigorous\u2019 Review of Paramount-Warner Bros. 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