A group of Democratic lawmakers is warning the FCC about foreign investors backing Paramount Skydance’s massive $111 billion acquisition of Warner Bros. Discovery. The senators, led by Cory Booker, are calling for a “full and independent” probe into the deal, citing concerns that Middle Eastern sovereign wealth funds and Chinese gaming giant Tencent could influence editorial decisions at CBS News and CNN.
The financiers, including Saudi Arabia’s Public Investment Fund, Qatar Investment Authority, and Abu Dhabi Investment Authority, have provided around $24 billion in funding for the deal. However, the senators argue that this foreign investment poses a risk to national security and editorial independence, particularly with regards to Tencent’s stake.
Tencent has committed $1 billion in equity financing, and lawmakers are concerned about the Chinese government’s ability to impact decision-making over major news outlets through information rights, licensing deals, and content output agreements. The senators believe that this gives Tencent implicit leverage over American broadcast journalism and content.
Paramount Skydance maintains that the FCC’s role in the deal is “minimal,” but the senators disagree, urging the agency to reject this premise and conduct a full probe under the Communications Act. They also call for coordination with the Justice Department, CFIUS, and intelligence agencies before concluding that the financing is risk-free.
The lawmakers point to specific concerns about Saudi prince Mohammed bin Salman, who they believe has ordered the murder of The Washington Post reporter Jamal Khashoggi in 2018. The senators are demanding a rigorous review of the deal to ensure it serves public interests and does not compromise editorial independence or national security.
Source: https://www.hollywoodreporter.com/business/business-news/paramount-warner-bros-foreign-investments-fcc-letter-1236544632