Senators Urge FCC to Halt Paramount-Warner Bros. Merger Amid Security Concerns

Three Democratic senators have urged the Federal Communications Commission (FCC) to prevent the merger between Paramount and Warner Bros. Discovery from closing until a review of foreign ownership is completed. Senators Cory Booker, Adam Schiff, and Elizabeth Warren expressed their concerns in a letter to FCC Chairman Brendan Carr, questioning whether foreign control of nearly half of the equity in major media outlets serves the American public's interests.

The merger would result in 49.5% foreign ownership, primarily from investment funds based in Saudi Arabia, Qatar, and Abu Dhabi. Paramount has submitted a petition to the FCC for approval of this investment, as any foreign ownership exceeding 25% requires regulatory clearance. The FCC is currently reviewing the transaction through the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector, which is tasked with evaluating potential national security risks. A 120-day review period has commenced, although it may conclude sooner.

The senators emphasized that the FCC must not allow the merger to proceed before the security review is finalized, which could take several months. They highlighted concerns over the structure of the transaction, noting that it involves foreign sovereign wealth funds in a manner not previously seen in FCC reviews. Paramount has argued that foreign investment is essential for capitalizing U.S. broadcasters and maintaining service quality, asserting that foreign investors will not control the company or its editorial policies. The merger also awaits approval from regulators in the UK and the European Union, alongside scrutiny from state attorneys general.