1 week ago
As Paramount seeks support from an array of antitrust authorities for its acquisition of Warner Bros. Discovery, Democrats are turning to different beforehand successful their opposition: The overseas investors successful nan transaction.
Paramount has disclosed that full overseas ownership of nan mixed institution would beryllium 49.5%, including 38.5% from finance costs from Saudi Arabia, Qatar and Abu Dhabi. Paramount has petitioned nan FCC to motion disconnected connected nan overseas investment, arsenic immoderate overseas ownership liking supra 25% requires agency approval. The FCC is successful nan midst of a nationalist remark period connected Paramount’s request, pinch submissions owed by May 27.
In a missive to FCC Chairman Brendan Carr connected Thursday, a group of Senate Democrats wrote that nan “foreign governments down this finance systematically suppress property state successful their ain countries and person made a bid of investments and gifts to entities controlled by nan president and his family, raising superior concerns astir their power complete nan independent American media and nan imaginable for corruption.”
They added, “Paramount’s petition asks for an unprecedented grade of overseas power of U.S. broadcasting. Paramount’s rationale for a waiver of overseas ownership rules is based connected its assertion that nan overseas costs will beryllium passive investors. But moreover arsenic passive investors, these overseas entities could beryllium successful a position to summation delicate accusation connected Americans’ financial and different individual information, and their viewing habits, arsenic good arsenic nan expertise to power nan contented carried by this monolithic media conglomerate.”
Sen. Maria Cantwell (D-WA), nan apical Democrat connected nan Senate Commerce Committee, was joined successful nan missive by Sen. Ed Markey (D-MA), Sen. Elizabeth Warren (D-MA), Sen. Andy Kim (D-NJ), Sen. Ben Ray Lujan (D-NM) and Sen. John Hickenlooper (D-CO).
The missive to Carr mirrors immoderate of nan concerns that person been raised by nan FCC’s sole Democrat, Anna Gomez, who called for a “rigorous review” of nan overseas investments earlier this month. She, too, warned of investments from “foreign governments pinch documented records of property suppression and a troubling willingness to soundlessness journalists.”
Paramount contends that nan overseas investments do not airs nationalist security, rule enforcement, overseas argumentation aliases waste and acquisition argumentation concerns. They noted that nan Ellison family will clasp a mostly of nan voting interests and control, while nan overseas investors will not person voting power aliases governance.
The FCC is not reviewing nan Paramount-WBD merger per se, arsenic nan transaction does not impact nan transportation of broadcast licenses.
On Wednesday, Carr told reporters that successful position of regulatory reappraisal of nan transaction, “there’s going to beryllium a mini portion for nan FCC. There’s immoderate overseas finance aliases overseas dollars that are progressive successful being invested successful CBS to complete nan purchase, and truthful we are moving nan regular people process connected that.” He besides said it was his knowing that location would beryllium a domiciled for Committee connected Foreign Investment successful nan United States to reappraisal nan transaction.
In a statement, Paramount noted that their FCC overseas ownership petition is besides undergoing reappraisal of “Team Telecom,” which includes nan Justice Department, Department of Homeland Security and nan Department of Defense.
“When nan transaction and equity syndication close, nan Ellison family and RedBird will collectively clasp nan largest equity liking successful nan mixed company, and nan Ellison family will proceed to power nan institution and each of its voting shares,” a Paramount spokesperson said.
In their letter, nan senators called connected Carr to return nan overseas ownership reappraisal to nan afloat commission. They besides cited his erstwhile comments astir overseas ownership of U.S. media entities, noting that successful a 2024 question and reply pinch Fox News, he referred to TikTok arsenic a “clear and coming threat to U.S. nationalist security” fixed its Chinese ownership. They besides pointed to his opposition to a 2024 licence transportation of much than 200 power stations arsenic Audacy sought to look from bankruptcy, citing nan overseas ownership stake.
The senators wrote that “in nan lawsuit of Paramount, moreover earlier nan exertion was filed, you claimed that nan FCC had a ‘very minimal’ domiciled successful reviewing Paramount’s overseas ownership, nan reappraisal would ‘get done beautiful quickly,’ and that nan Paramount-Warner Bros. transaction was a ‘good deal.’ These comments raise questions astir your impartiality and nan rigor of nan Commission’s reappraisal of this unprecedented overseas investment.”
The lawmakers besides pointed to reports that Tencent, “a Chinese institution connected nan Department of Defense’s database of companies connected to nan Chinese military, will besides return an equity liking successful nan mixed company.” Paramount past twelvemonth listed nan institution among its number investors, but it mater dropped retired of nan deal. In March, Bloomberg reported that Tencent was again looking to put successful nan mixed company.
The senators besides asked Carr a bid of questions, including whether Tencent’s domiciled would beryllium reviewed, and connected nan benignant of assurances that nan overseas costs person fixed that they would not effort to power editorial aliases contented decisions.
An FCC spokesperson did not instantly respond to a petition for comment.
