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

Senate Democrats have written to Federal Communications Commission Chairman Brendan Carr, urging him to conduct a rigorous review of the proposed $111 billion takeover of Warner Bros. Discovery by Paramount Skydance. The lawmakers are concerned about foreign investors’ growing influence in American media and the potential risks it poses to national security.

Led by Senator Maria Cantwell, the group of Democrats is citing concerns about the erosion of press independence and the implications for U.S. broadcasting. Their argument centers on Paramount’s filing with the FCC, which reveals that foreign investors – including sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi – would hold a significant 49.5% stake in the merged company.

This has sparked worries among lawmakers about the potential for hostile governments to exert undue influence over American journalism and culture. The scale of this proposed deal is unprecedented, raising serious questions about the implications for U.S. broadcasting. Foreign investors would have indirect ownership stakes through Paramount’s structure, which could allow them to sidestep the 25% limit on direct foreign ownership set by Congress.

The FCC has historically been cautious in its approach to foreign investment, but Chairman Carr may be taking a more relaxed stance. In an interview with CNBC, he expressed optimism about the deal’s prospects, stating that he believes it should “get through [FCC review] pretty quickly.” This comment has sparked allegations of impartiality and a lack of rigor in reviewing this unprecedented foreign investment.

There are also questions surrounding the involvement of China’s Tencent Holdings Limited. Although Paramount initially stated that Tencent was no longer involved due to concerns over foreign ownership, a subsequent report from Bloomberg revealed that Tencent had re-entered as an investor with fresh funding. This has raised eyebrows among lawmakers, who point out that such dealings could potentially allow China’s most significant adversary – the United States – to partly own Paramount or its combined entity.

The trend of foreign investment in American media raises concerns about the erosion of press independence and national security risks. The proposed merger comes on the heels of a recent deal between Disney and Fox, which similarly raised questions about foreign influence over U.S. broadcasting. It is becoming increasingly clear that foreign investors are taking an active role in shaping America’s media landscape.

The stakes are high for this decision, not only because it has implications for national security but also because it sets a precedent for future deals. If the FCC approves Paramount-Warner Bros., it may embolden other foreign entities to pursue similar investments, further blurring the lines between American and foreign ownership in media.

As the FCC considers its decision, lawmakers are right to be vigilant about protecting American interests and press independence. Chairman Carr must carefully weigh the potential risks and benefits of approving this deal, considering the long-term implications of his decisions on foreign investment in U.S. media. The agency’s decision will have far-reaching consequences for U.S. broadcasting, and it is essential that the FCC takes a rigorous and impartial approach to safeguarding national security and ensuring the integrity of America’s press.