Three Democratic senators are pushing the Federal Communications Commission to block the proposed merger between Paramount and Warner Bros. Discovery, arguing that the deal's significant foreign ownership stakes could threaten U.S. national security.
Sens. Cory Booker (D-N.J.), Adam Schiff (D-Calif.), and Elizabeth Warren (D-Mass.) sent a letter Thursday to FCC Chairman Brendan Carr, urging him to prevent the merger from closing until a thorough review of foreign investment is complete. The lawmakers stressed that the review must rigorously assess the security threats from foreign government-backed investors.
According to financial disclosures, foreign entities would hold approximately 49.5 percent of the combined company. Paramount has informed the FCC that non-U.S. investors include sovereign wealth funds from Saudi Arabia, Abu Dhabi, and Qatar, but the company maintains the deal poses no national security or trade policy concerns.
The senators dismissed those assurances, writing that Carr should not take the company's representations at face value. They argued that the Gulf sovereign wealth funds represent the financial instruments of three foreign governments with a shared record of censorship and press suppression. The foreign ownership would be nearly double the statutory threshold set under Section 310 of the 1934 Communications Act, which generally caps foreign ownership of broadcast license holders at 25 percent.
The Justice Department last week approved Paramount's $110 billion acquisition bid, concluding that the transaction is unlikely to reduce competition or harm consumers in streaming, television, or film production. However, that conclusion has drawn sharp criticism from more than 1,000 entertainment industry professionals, including major Hollywood stars, who signed an open letter this spring arguing that the merger would further consolidate an already concentrated media landscape.
Booker, Schiff, and Warren have set a July 1 deadline for Carr to formally notify Paramount that the deal may not close while reviews are pending. The senators also want the FCC to demand full disclosure of all foreign ownership interests and to deny any petition for preemptive approval to exceed foreign ownership limits.
The debate comes amid broader concerns about foreign influence in U.S. media. Meanwhile, other political battles are unfolding, including GOP senators' dismay over Trump's Iran deal and the controversial removal of displays from national parks.
The FCC has not yet publicly responded to the senators' demands, but the letter adds significant political pressure to an already contentious merger review.
