By David Shepardson
WASHINGTON, May 21 (Reuters) – A group of six Democratic senators have expressed serious concerns about planned foreign ownership interests, including from Gulf sovereign wealth funds, in the proposed $111 billion Paramount-Warner Bros Discovery merger.
Last month, Paramount Skydance asked the Federal Communications Commission (FCC) to approve foreign investments backing its acquisition of Warner Bros Discovery. The senators raised concerns about Middle Eastern sovereign wealth funds and Chinese companies taking part.
“Foreign governments hostile to a free and independent press could exert unprecedented influence over a media conglomerate vital to American journalism and culture,” said a letter signed by Senators Maria Cantwell, Ed Markey, Ben Ray Lujan and others to FCC Chair Brendan Carr, seen by Reuters and sent late on Wednesday.
Cantwell is the top Democrat on the Senate Commerce Committee which oversees the FCC, and other signatories of the letter are members of the committee.
The senators noted the deal involves sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi investing in a company that would control CBS stations, as well as major cable news operations including CNN. They also cited reports that China’s Tencent could also take part.
The combined firm would include the 28 television stations owned by CBS, the movies and television shows of Paramount, and CNN, HBO, and other media properties.
The family of Paramount CEO David Ellison will continue to control voting shares, the company said in its filing seeking a waiver.
Carr told reporters Wednesday the FCC had sought public comment on Paramount’s request and that it would also be reviewed by CFIUS, a Treasury-led interagency committee that vets foreign investments for national security risks.
“We urge you to conduct a rigorous and thorough review of the foreign investment in Paramount, its impact on editorial independence, and its implications for U.S. national security,” the senators wrote.
The FCC did not immediately comment on the letter.
Paramount said last year that Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi-based L’imad Holding Company, and Qatar Investment Authority (QIA) had agreed to back its proposed takeover of Warner Bros.
The senators asked what specific assurances had been provided by the Saudi, Emirati, and Qatari sovereign wealth funds and Tencent to the FCC “that they will not attempt to influence the editorial, journalistic, or content decisions at Paramount.”
Last July, the FCC approved CBS-parent Paramount’s tie-up with Skydance Media.
(Reporting by David ShepardsonEditing by Tomasz Janowski and Susan Fenton)
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