Three Democratic senators have asked the Federal Communications Commission (FCC) to halt the merger between Paramount and Warner Bros. Discovery. They are worried about foreign investors gaining control of what could become one of the largest media companies in the United States.
In a letter addressed to FCC Chairman Brendan Carr, Senators Cory Booker, Adam Schiff, and Elizabeth Warren stressed the need for a thorough review of the foreign investments involved. They believe the FCC should assess potential national security risks linked to foreign government stakes in the $110 billion merged company. If the merger proceeds, it could see CNN and CBS News under the same corporate ownership, which would further concentrate media power.
Paramount’s CEO, David Ellison, mentioned in an April financial report that foreign ownership in the combined company would be about 49.5%. Although he stated that voting rights would remain with the Ellison family through U.S. entities, the senators remain skeptical, urging Carr not to take these assurances at face value.
The senators argued that the FCC should reject Paramount’s request for early approval, citing laws that limit foreign ownership in U.S. firms holding broadcasting licenses. They also highlighted that Saudi Arabia’s public investment fund and several entities from the UAE and Qatar would be involved as stakeholders.
Booker, Schiff, and Warren set a deadline of July 1 for Carr to inform Paramount that the merger cannot be finalised until the foreign investment review is complete. The FCC’s approval is a significant hurdle, although the Department of Justice has stated it would not challenge the merger. If the review proceeds as requested, it could alter the final outcome.
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