MediaMerger – Senators Push FCC for Deeper Review of Paramount Deal
MediaMerger – A group of Democratic senators has urged the Federal Communications Commission to closely examine a proposed media transaction that could allow sovereign wealth funds from Saudi Arabia, the United Arab Emirates, and Qatar to secure large ownership stakes in Paramount Global and several major American broadcasting assets.
The lawmakers warned that the deal raises broader concerns involving national security, editorial independence, and the long-term protection of press freedom in the United States.
Senators Seek Detailed FCC Examination
In a letter addressed to FCC Chairman Brendan Carr, six Democratic senators led by Maria Cantwell and Ben Ray Luján requested a comprehensive review of Paramount Global’s application. The filing reportedly seeks approval for foreign investors to hold ownership interests ranging from nearly half to complete equity control in television stations licensed by the FCC.
According to the senators, the financing proposal is tied to the planned merger involving Paramount, Skydance Media, and Warner Bros. Discovery in a transaction estimated at $111 billion. If completed, the combined company would oversee major media operations including CBS television stations, CNN, HBO, Paramount Pictures, and several other entertainment and news brands.
Concerns Over Foreign Influence in US Media
The lawmakers argued that the size and structure of the proposal could create unprecedented foreign influence over influential American media organizations. They stated that foreign governments with restrictive media environments should not gain substantial leverage over news institutions that shape public debate and journalism in the United States.
In their letter, the senators stressed that existing federal law limits foreign ownership in American broadcast companies to 25 percent under Section 310 of the Communications Act. They noted that these restrictions were originally designed to reduce risks tied to foreign control and the possibility of propaganda affecting domestic audiences.
Saudi Arabia, UAE and Qatar Mentioned in Letter
The senators specifically identified Saudi Arabia, the UAE, and Qatar while discussing concerns over media freedom records in those countries. They referenced international press freedom rankings that have repeatedly placed Saudi Arabia among the lowest-performing nations for independent journalism protections.
The letter also pointed to the 2021 US intelligence assessment related to the killing of journalist Jamal Khashoggi, which concluded that Saudi Crown Prince Mohammed bin Salman approved the operation connected to the incident.
Lawmakers said approval of the proposal could give sovereign wealth funds from those nations meaningful influence over major US news outlets such as CNN, CBS News, 60 Minutes, and numerous local television stations owned by Paramount.
Tencent Stake Raises Additional Questions
Apart from Middle Eastern investment funds, the senators also raised concerns about reports suggesting that Tencent may receive an ownership interest in the merged media company. Tencent has previously been identified by the Pentagon as a company linked to the Chinese military.
The lawmakers argued that allowing entities connected to geopolitical rivals to gain partial ownership of influential American media operations could introduce additional national security risks. They warned that such arrangements may create vulnerabilities involving information control, media independence, and strategic communications.
Questions Raised About FCC Neutrality
The senators additionally questioned whether the FCC review process would remain impartial. They referenced earlier public comments from Chairman Brendan Carr, who reportedly described the merger as a positive transaction and suggested the regulatory review could move forward quickly.
Because of the scale and public importance of the proposal, the lawmakers requested that the matter be reviewed directly by the full Commission rather than being handled internally through routine staff approval procedures.
Broadcasting Ownership Rules Under Scrutiny
Foreign ownership limits in American broadcasting have historically been treated with caution because television and radio networks are considered strategically important communication platforms. While the FCC has approved some foreign investments in media companies in the past, those approvals generally involved smaller stakes and investors from allied countries.
The senators emphasized that the agency has never approved a major ownership position in a US broadcaster involving sovereign wealth funds at the scale currently being proposed.