Senators urge FCC to block Paramount Warner merger

Three U.S. senators are urging federal regulators to block the planned merger of Paramount and Warner Bros. Discovery until a mandatory national security review of significant foreign government investment in the new company is completed. In a letter sent to Federal Communications Commission Chairman Brendan Carr on June 18, Senators Cory Booker, Elizabeth Warren, and Adam Schiff argued that allowing the deal to close before this assessment would circumvent a critical legal safeguard.

The lawmakers cited Paramount's own disclosure that approximately 49.5% of the equity in the combined media giant would be owned by foreign investors, a figure nearly double the 25% statutory threshold that triggers an FCC review. About 38.5% of that stake is held by three Middle Eastern sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. The senators emphasized that the parent company would control major broadcast assets including CBS, CNN, and 28 local television stations.

Paramount has petitioned the FCC not only to approve the current foreign investment level but also to grant advance approval for each foreign investor to potentially increase its individual stake to up to 20% in the...