Senators Call On FCC To Prevent Paramount

Key Points:

• Three Democratic senators—Cory Booker, Adam Schiff, and Elizabeth Warren—are urging the FCC to block the Paramount–Warner Bros. Discovery merger from closing until a thorough review of foreign ownership is completed, citing concerns over nearly 50% equity held by foreign governments.
• Paramount disclosed that 49.5% of the combined company’s ownership would come from foreign investment funds from Saudi Arabia, Qatar, and Abu Dhabi, requiring FCC approval due to the stake exceeding the 25% foreign ownership threshold.
• The merger is under review by the Committee for the Assessment of Foreign Participation in U.S. Telecommunications, which is analyzing potential national security risks; the review began a 120-day clock but may conclude sooner.
• Senators warned that Paramount seeks approval for potential future increases in foreign ownership up to 100%, and raised concerns about the complex ownership structure possibly obscuring true foreign government control.
• Paramount maintains that foreign investors will not control decision-making and points to precedents allowing foreign investment in U.S. broadcasters, emphasizing commitments to protect editorial independence; the deal also awaits regulatory clearance in the UK, EU, and scrutiny by state attorneys general.