Democratic senators, including Maria Cantwell and Ben Ray Lujan, have raised alarms regarding a proposed media merger. This merger could potentially allow sovereign wealth funds from Saudi Arabia, the United Arab Emirates, and Qatar to acquire significant stakes in Paramount Global and its broadcast television assets. The senators have urged a thorough review by the Federal Communications Commission (FCC) due to national security and press freedom implications.
The proposed merger involves Paramount Skydance and Warner Bros. Discovery, totaling $111 billion. If approved, this merger would create a media giant encompassing CBS television stations, Paramount Pictures, CNN, HBO, and other major media entities. The senators emphasized the need for scrutiny, citing concerns about foreign governments influencing American journalism and culture through this conglomerate.
Highlighting the scale and potential risks, the lawmakers pointed out that the proposal surpasses the 25% foreign ownership cap set under Section 310 of the Communications Act. They underscored that such restrictions were put in place to prevent foreign dominance and propaganda threats associated with foreign-owned media outlets. Specifically, Saudi Arabia, the UAE, and Qatar were singled out for their track records of stifling independent media within their borders.
The senators also referenced the 2026 Press Freedom Index by Reporters Without Borders, which identified Saudi Arabia as one of the worst countries for press freedom. Moreover, they mentioned a 2021 US intelligence assessment implicating Saudi Crown Prince Mohammed bin Salman in the operation against journalist Jamal Khashoggi. The senators expressed concerns that if approved, sovereign investment funds from these countries could wield significant influence over prominent news outlets in the US, including CNN and CBS News.
Raising further apprehension, the senators highlighted reports suggesting that Tencent, a Chinese tech company linked to the Chinese military, might also acquire an equity stake in the merged entity. They warned that allowing a major adversary like China to have ownership in entities like Paramount, CNN, and CBS News could pose risks to national security. The lawmakers questioned the impartiality of FCC Chairman Brendan Carr and called for a comprehensive review by the full Commission to ensure transparency and accountability.
Foreign ownership in US broadcasting has traditionally been closely regulated due to the strategic nature of television and radio stations as communication assets. While limited foreign investments have been approved in the past, predominantly from allied nations, the senators noted that significant ownership by a sovereign wealth fund has never been sanctioned by the FCC.
