Dem senators urge FCC to put Paramount-Warner Bros Discovery merger on hold
Democratic Senators Call for FCC to Pause Paramount-Warner Bros. Discovery Merger
Three Democratic senators, Cory Booker, Adam Schiff, and Elizabeth Warren, have raised concerns about foreign investors potentially controlling one of the largest media companies in the United States due to the Paramount-Warner Bros. Discovery merger.
In a joint letter to FCC Chairman Brendan Carr, the senators demanded a pause on the merger until a thorough review of the foreign investors involved is conducted to assess any national security threats.
The senators highlighted Paramount’s disclosure that foreign ownership in the new corporation would reach approximately 49.5%, with voting rights controlled by the Ellison family through U.S. entities. Saudi Arabia’s public investment fund and entities from the UAE and Qatar would also be equity holders.
Paramount assured the FCC that this arrangement would not pose any national security concerns, but the senators urged a more rigorous evaluation of the implications of such foreign ownership.
Concerns Over Foreign Investment and National Security
The senators argued against preemptive approval of the merger and emphasized the need for a comprehensive review under Section 310 of the 1934 Communications Act, which limits foreign ownership of U.S.-based firms with FCC-issued broadcast licenses.
They set a deadline of July 1 for the FCC to notify Paramount that the deal cannot proceed until the foreign investment review is completed.
The FCC’s approval is a significant regulatory hurdle for the merger, as the Department of Justice has indicated it will not challenge Paramount’s acquisition of Warner Bros.
Antitrust Concerns and Opposition
The DOJ’s antitrust division concluded that the merger is unlikely to harm competition or consumers in various media sectors. However, Senator Warren criticized this decision and urged state attorneys general to continue opposing the transaction.
More than 5,000 filmmakers and actors in Hollywood have also voiced opposition to the merger, citing concerns about reduced competition and job opportunities in the industry.
