Democratic senators ask FCC to halt Paramount-Warner merger pending foreign investment review

Three Democratic senators have written to Federal Communications Commission Chairman Brendan Carr requesting that the proposed Paramount-Warner Bros. Discovery merger be placed on hold pending a review of foreign investment. The senators – Cory Booker of New Jersey, Adam Schiff of California and Elizabeth Warren of Massachusetts – said the deal could raise national-security concerns because foreign investors would own roughly 49.5 percent of the combined company, exceeding the 25 percent limit for broadcast-license holders under the 1934 Communications Act.

Paramount disclosed that the Saudi Public Investment Fund and entities from the United Arab Emirates and Qatar would hold equity in the merged entity, while voting control would remain with the Ellison family through U.S. entities. The company told the FCC that the arrangement poses no national-security, law-enforcement or foreign-policy issues.

"The FCC must conduct a thorough review of the possible national-security threats posed by foreign government investment," the senators wrote.

The lawmakers set a July 1 deadline for Carr to inform Paramount that the transaction cannot close until the foreign-investment review is finished. They also urged the FCC to reject Paramount’s request for pre-emptive approval, arguing that the Ellison family’s statements should not be taken at face value.

The FCC’s approval is the final regulatory hurdle; the Department of Justice has already cleared the merger on antitrust grounds, concluding it is unlikely to harm competition or consumers. Warren criticized the DOJ’s decision and called on state attorneys general to continue opposing the deal. California Attorney General Rob Bonta is leading a coalition of states preparing a lawsuit to block the acquisition.

Industry groups, including more than 5,000 Hollywood filmmakers and actors, have also opposed the merger, citing concerns about reduced competition and job opportunities.