Senators Demand FCC Review of $24B Middle Eastern Funding in $111B Merger
Democratic senators led by Booker and Schumer urged FCC Chairman Brendan Carr to scrutinize Paramount's $111 billion bid for Warner Bros. Discovery, citing $24 billion in Saudi, Qatari and Abu Dhabi funding and an $80 billion combined debt load. They demand an independent review of foreign ownership due to media independence concerns.
1. Senators Request FCC Review
Seven U.S. senators, led by Cory Booker and Chuck Schumer, sent a letter to FCC Chairman Brendan Carr pressing for a full and independent examination of foreign ownership interests in Paramount Skydance’s $111 billion acquisition of Warner Bros. Discovery. They assert that the FCC must closely evaluate the impact of substantial Middle Eastern investments on U.S. broadcast licenses held by CBS.
2. Deal Financing and Structure
The proposed merger, valued at $111 billion, is backed by billionaire Larry Ellison and his family and includes $24 billion in equity from Saudi Arabian, Qatari and Abu Dhabi wealth funds. Post-merger, the combined entity would carry approximately $80 billion in debt while integrating iconic assets such as HBO, CBS, CNN and Warner Bros. film studios.
3. Regulatory Timeline and Oversight
Paramount expects to close the transaction by the end of September, but the FCC’s review is critical because CBS holds federally regulated broadcast licenses. Meanwhile, the Justice Department’s antitrust review has not issued a public decision, raising questions over timing and potential conditions for approval.
4. Media Independence Concerns
Senators warn that foreign equity partners, though described as passive investors, could still influence editorial direction at media outlets like CNN and CBS News. They cite national security and the future of Hollywood production as reasons for stringent oversight of any foreign involvement.