Key facts
- Sens. Cory Booker, Adam Schiff, and Elizabeth Warren are pressing the FCC to halt the Paramount-Warner Bros. Discovery merger.
- They cite national security risks due to foreign government investment, which would constitute approximately 49.5% ownership.
- The senators argue that the FCC should not accept Paramount's assurances that the deal poses no national security concerns.
- The Justice Department previously approved the merger, finding it unlikely to reduce competition.
- A July 1 deadline was set for the FCC to notify Paramount that the deal may not close pending review.
Three Democratic senators have urged the Federal Communications Commission (FCC) to pause the proposed merger between Paramount and Warner Bros. Discovery, citing potential national security risks associated with significant foreign investment.
In a joint letter to FCC Chairman Brendan Carr, Senators Cory Booker, Adam Schiff, and Elizabeth Warren requested that the commission block the deal's premature closing until a thorough review of foreign ownership interests is completed. They highlighted that financial disclosures indicate foreign investors would hold approximately 49.5 percent of the combined company, a stake they argue is nearly double the statutory threshold.
The senators expressed concern that the Gulf sovereign wealth funds involved represent financial instruments of foreign governments with records of censorship and press suppression. They advised Carr not to accept Paramount's assurances that the deal would not raise national security, law enforcement, foreign policy, or trade policy concerns.
Paramount had previously informed the FCC in April that non-U.S. investors included entities from Saudi Arabia, Abu Dhabi, and Qatar. The senators contended that the review must rigorously assess the national security threats posed by foreign government investment in a major U.S. news media company.
This call comes after the Justice Department approved Paramount's $110 billion bid last week, determining that the transaction was unlikely to reduce competition or harm consumers in areas like on-demand video streaming and film production. However, over 1,000 entertainment industry professionals have also opposed the merger, arguing it would further consolidate an already concentrated media landscape.
The senators have set a July 1 deadline for Carr to formally notify Paramount that the deal may not close while reviews are pending.