Rigorous Review of Foreign Investment Urged In PSKY-WBD Deal

FCC Commissioner Calls for National Security Review of Foreign Investments in Paramount-Warner Bros. Discovery Merger

The sole Democrat on the Federal Communications Commission on Tuesday urged a rigorous review of foreign ownership in the proposed merger between Paramount and Warner Bros. Discovery, citing serious national security concerns.

FCC Commissioner Anna Gomez warned that sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi are set to invest in the combined company, which would control CBS broadcast stations and major cable news outlets including CNN.

Anna Gomez

"There are serious, unresolved questions about how this foreign investment may jeopardize national security, and this commission has a legal obligation to answer them," Gomez said. "The American public deserves to know who owns the airwaves that carry their news."

She expressed alarm over what she described as an effort to "rubber stamp a financial structure that places nearly half of one of America’s largest broadcast and media companies into the hands of foreign governments with documented records of press suppression and a troubling willingness to silence journalists."

The call comes after Paramount Skydance asked the FCC last month to approve foreign investments backing its acquisition of Warner Bros. Discovery. Paramount has said the family of CEO David Ellison would retain control of voting shares.The investors include Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi-based L'imad Holding Company, and the Qatar Investment Authority (QIA). Paramount has argued the deal and new equity would strengthen its television operations and help it navigate industry challenges.

The FCC approved Paramount’s tie-up with Skydance Media last July. FCC Chair Brendan Carr has downplayed the foreign ownership issue as minor.

Several Democratic senators, including Cory Booker, Chuck Schumer, and Dick Durbin, have also pressed for scrutiny. They said Paramount’s claim that the investors would hold no governance rights requires "careful independent verification," warning of risks involving American viewer data and potential influence over CNN’s editorial decisions.

Paramount did not immediately respond to a request for comment.