Democrats Raise National Security Concerns Over Middle Eastern Funding of Paramount’s Warner Bros. Discovery Bid
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A proposed takeover of Warner Bros. Discovery by Paramount, backed by significant investment from Saudi Arabia, Abu Dhabi, and Qatar, is facing scrutiny from Congressional Democrats who fear the deal could compromise American media independence and national security. The escalating battle for Warner Bros. Discovery, which includes CNN, HBO, and iconic film and television studios, has ignited a debate over foreign influence in the U.S. entertainment landscape.
Hostile Takeover Bid Throws Media Future Into Doubt
Paramount, controlled by Larry Ellison, initially fell short in its bid for Warner Bros. Discovery due to concerns surrounding its financing. Undeterred, the company launched a hostile takeover on Monday, directly appealing to Warner shareholders with an offer of $30 per share. This aggressive move casts doubt on the Warner board’s previously favored $72-billion deal with Netflix, potentially reshaping the streaming landscape.
Paramount has consistently emphasized its strong relationship with President Trump as a key advantage, suggesting it could secure swift approval from the administration. However, the financial backbone of Paramount’s pursuit lies with foreign sovereign wealth funds.
$24 Billion Investment from Middle Eastern Royal Families
According to regulatory filings, Saudi Arabia, Abu Dhabi, and Qatar have collectively pledged $24 billion to support Paramount’s $78-billion bid – double the amount committed by the Ellison family. This substantial financial contribution has raised alarms among lawmakers. Jared Kushner’s private equity firm, Affinity Partners, is also poised to gain an ownership stake in the deal.
On Wednesday, Representatives Sam T. Liccardo (D-San José) and Ayanna Pressley (D-Mass.) urged the Warner Bros. board to consider the ramifications of selling the company, including the influential news organization CNN, to foreign governments. “This transaction raises national security concerns because it could transfer substantial influence over one of the largest American media companies to foreign-backed financiers,” the lawmakers wrote in a statement.
Concerns Over Foreign Influence and Content Control
The lawmakers highlighted the extensive reach of Warner Bros. Discovery’s platforms – including HBO, Max, CNN, Warner Bros. Pictures, and Discovery – which collectively reach “tens of millions of American households” and significantly shape public opinion. They cautioned that transactions involving foreign investors with potential governance rights or influence over content distribution could create vulnerabilities exploitable by foreign governments.
Paramount, in its filings, stated that the Middle Eastern families would relinquish voting rights and decision-making roles despite providing over half of the necessary equity. However, this assurance has done little to quell concerns.
Khashoggi Murder and Ties to Saudi Crown Prince
The involvement of Saudi Crown Prince Mohammed bin Salman is particularly troubling to the lawmakers. They cited a declassified 2021 report from the U.S. Director of National Intelligence, which concluded that the Crown Prince ordered the murder of Washington Post journalist and U.S. resident Jamal Khashoggi. “The fund is controlled by Crown Prince Mohammed bin Salman, whom…ordered the murder of U.S. resident and Washington Post journalist Jamal Khashoggi,” the representatives wrote.
Adding another layer of complexity, former President Trump recently suggested the Netflix deal “could be a problem,” signaling potential opposition to that outcome as well.
The future of Warner Bros. Discovery remains uncertain as the battle for control intensifies, raising critical questions about the role of foreign investment in shaping the American media landscape. Representatives of Warner Bros. and Paramount have declined to comment on the ongoing situation.
