Senate Democrats Implore FCC Chair to Conduct ‘Rigorous’ Review of Paramount-Warner Bros. Merger Foreign Investment: Deal ‘Raises National Security Alarms’

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.

The pending Paramount-WBD merger “raises national security alarms,” 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.

The crux of their misgivings: In April, Paramount disclosed in an FCC filing that the merged Paramount-WBD would be 49.5% owned by foreign investors, with about 38.5% of the equity in the new company owned by the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. Paramount’s filing seeks a declaratory ruling by the FCC permitting that foreign ownership — 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.