WBD Deal: Dem Lawmakers Warn Of National Security Risks

Two Democratic U.S. representatives have fired a direct warning to Warner Bros. Discovery (WBD) leadership: any acquisition by Paramount Skydance could face intense scrutiny, potential blocks, or even forced unraveling under a future Democratic administration due to deep ties to foreign investors from Saudi Arabia, Qatar, and Abu Dhabi. 

In a letter to WBD CEO David Zaslav, the board, and Treasury Secretary Scott Bessent, Reps. Sam Liccardo (D-Calif.) and Ayanna Pressley (D-Mass.) labeled the deal a "serious national security concern," arguing it could hand undue influence over a cornerstone of American media to state-linked entities with conflicting interests.

The lawmakers, both on the House Financial Services Committee, urged WBD to immediately file a voluntary notice with the Committee on Foreign Investment in the United States (CFIUS) for a mandatory review before any binding agreement. They emphasized that even without formal control—such as board seats—the $24 billion in funding from Middle Eastern sovereign wealth funds could subtly shape content and operations at WBD, which owns CNN, HBO, Warner Bros. studios, and franchises like Harry Potter and DC Comics. 

"Even absent overt control, such influence can present a national-security threat," the letter states, citing risks from investors like Saudi Crown Prince Mohammed bin Salman's Public Investment Fund, linked to the 2018 murder of journalist Jamal Khashoggi.

This intervention escalates an already chaotic Hollywood takeover saga. On Monday, Paramount Skydance—recently acquired by David Ellison for $8 billion—launched a hostile $108.4 billion all-cash bid directly to WBD shareholders at $30 per share, aiming to derail a $72 billion deal WBD struck with Netflix just days earlier for its studios, HBO, and Max streaming service. Paramount's offer, backed by Ellison's father Larry (Oracle co-founder), RedBird Capital, Apollo Global Management, Bank of America, Citibank, and Jared Kushner's Affinity Partners (which draws heavily from Saudi funds), promises to forgo governance rights for foreign backers to sidestep CFIUS jurisdiction. 

Yet Liccardo and Pressley dismissed this as insufficient, warning that a future Democratic Congress "may recommend that regulators push for divestitures," potentially gutting the merger's value years after closing.

The letter demands a response from WBD by December 22, framing the board's duty as protecting both national security and shareholder interests amid "uncertain but potentially extensive mitigation obligations." 

Broader Democratic opposition echoes this: Sens. Elizabeth Warren (D-Mass.) and Chris Murphy (D-Conn.) have decried the bid as an "anti-monopoly nightmare" laced with "influence-peddling" from Trump allies like the Kushner-linked fund and Ellison family, who recently dined with President Trump and settled a $16 million lawsuit over edited Kamala Harris interview footage at CBS News. Warren specifically called for DOJ and CFIUS probes into the "who's who of Trump buddies" financing, highlighting antitrust risks in consolidating TV giants.

WBD has not publicly responded, but its board is reviewing the bid while standing by the Netflix agreement, which excludes cable assets like CNN and would spin them off.