{"id":341862,"date":"2025-12-10T22:25:10","date_gmt":"2025-12-10T22:25:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/341862\/"},"modified":"2025-12-10T22:25:10","modified_gmt":"2025-12-10T22:25:10","slug":"democrats-warn-of-national-security-concerns-with-paramounts-wbd-bid","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/341862\/","title":{"rendered":"Democrats Warn of National Security Concerns With Paramount’s WBD Bid"},"content":{"rendered":"

\n\tTwo Democratic lawmakers \u2014 U.S. Reps. Sam Liccardo (D-Calif.) and Ayanna Pressley (D-Mass.) \u2014 have expressed \u201cserious national security concerns\u201d over Paramount Skydance<\/a>\u2018s hostile takeover bid for Warner Bros. Discovery<\/a>.<\/p>\n

\n\tLiccardo and Pressley sent a letter Wednesday to Warner Bros. Discovery president and CEO David Zaslav and members of WBD\u2019s board of directors. They also sent a copy of the letter to U.S. Treasury Secretary Scott Bessent. (Read the full letter below.)<\/p>\n

\n\tA Paramount deal for WBD \u201ccould transfer substantial influence over one of the largest American media companies to foreign-backed financiers,\u201d the U.S. representatives wrote.<\/p>\n

\n\tSpecifically, the U.S. representatives are concerned about Paramount\u2019s takeover offer for WBD being backed by sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. The Saudi Public Investment Fund is controlled by Crown Prince Mohammed bin Salman. According to the representatives, \u201cU.S. intelligence agencies have conclusively implicated Prince Salman in the brutal homicide of Washington Post journalist Jamal Khashoggi, to suppress dissent.\u201d<\/p>\n

\n\tLiccardo and Pressley also noted that Paramount\u2019s bid for WBD is backed by Affinity Partners, the investment company formed by Jared Kushner, who is President Donald Trump\u2019s son-in-law.<\/p>\n

\n\tThe lawmakers wrote that a future Democratic-controlled Congress or White House \u201cwill review many of the decisions of the current Administration, and may recommend that regulators push for divestitures, which would undermine the strategic logic of this merger.\u201d<\/p>\n

\n\tReps for Warner Bros. Discovery and Paramount Skydance declined to comment.<\/p>\n

\n\tOn Monday, David Ellison\u2019s Paramount Skydance launched a direct-to-shareholders hostile takeover effort for WBD<\/a>, with its most recent bid carrying an enterprise value of $108.4 billion. That came after Netflix and Warner Bros. Discovery on Dec. 5 announced an $83.7 billion agreement<\/a>, under which the streamer would buy WB\u2019s studios, HBO, HBO Max and games divisions.<\/p>\n

\n\tSEE ALSO: How Netflix\u2019s WB Megadeal Stunned Hollywood \u2014 and Sparked a Fight From David Ellison<\/a><\/p>\n

\n\tAccording to Paramount\u2019s deal terms to acquire WBD, the three Middle Eastern sovereign wealth funds (Saudi Arabia, Qatar and Abu Dhabi) and Kushner\u2019s Affinity Partners are backing the $30\/share offer for Warner Bros. Discovery, along with David Ellison\u2019s father, Oracle co-founder Larry Ellison; RedBird Capital Partners; and Apollo Global Management. <\/p>\n

\n\tBut the Arab wealth funds and Kushner\u2019s Affinity \u201chave agreed to forgo any governance rights \u2014 including board representation \u2014 associated with their non-voting equity investments,\u201d Paramount said in an SEC filing. As such, the deal would not require review by the Committee on Foreign Investment in the United States (CFIUS), the government entity tasked with oversight and investigation of foreign investment in U.S. companies, according to Paramount<\/a>. In addition, Chinese internet company Tencent, which had previously committed $1 billion toward the WBD takeover deal, is no longer a financing partner.<\/p>\n

\n\tIn their letter, Liccardo and Pressley demanded that WBD file a notice with CFIUS if it proceeds with negotiations with Paramount \u201cor any other buyer financed by foreign sovereign investors.\u201d <\/p>\n

\n\t\u201cCFIUS\u2019s mandate is clear: The Committee evaluates how foreign investment could harm U.S. national security and seeks to address those risks,\u201d the lawmakers wrote. \u201cA transaction of this nature \u2014 combining a major media portfolio with foreign-backed capital \u2014 plainly warrants that scrutiny.\u201d The lawmakers requested a response from Zaslav to their letter by Dec. 22, 2025.<\/p>\n

\n\t\u201cAs one of the most influential media companies in the world, Warner Bros. Discovery shapes America\u2019s news, entertainment, and cultural content like few companies on the planet,\u201d Liccardo said in a statement. \u201cEqually important, the company has private financial and personal data of tens of millions of Americans. We cannot allow powerful \u2014 and brutal \u2014 foreign-backed investors access to this trove of personal data, and to obtain influence over our nation\u2019s news ecosystem, without full scrutiny mandated by the law.\u201d<\/p>\n

\n\t\u201cShareholders deserve a full accounting of the regulatory and reputational risks tied to this sale,\u201d Liccardo said. \u201cAnything less could lead to significant congressional oversight and forced divestitures under a future administration.\u201d<\/p>\n

\n\tTrump has asserted that he will be involved in the U.S. government\u2019s review of a deal for Warner Bros.<\/a> When he was asked Monday at a White House briefing with reporters\u00a0if he was in favor of Paramount\u2019s rival bid for Warner Bros. Discovery<\/a>, he responded, \u201cI don\u2019t know enough about it,\u201d saying he has to look at how each proposed deal would impact Netflix and\u00a0Paramount Skydance\u2019s market. Trump added, \u201cI mean, none of them are particularly great friends of mine. You know, I want to do what\u2019s right.\u201d Trump, asked if Kushner\u2019s involvement in the Paramount bid would influence the president\u2019s opinion, said, \u201cI\u2019ve never spoken with him\u201d about Paramount\u2019s WBD deal.<\/p>\n

\n\tTrump has been friendly with the Ellisons. But this week he lashed out at them over a \u201c60 Minutes\u201d interview with Rep. Marjorie Taylor Greene (R-Georgia) in a Truth Social post. The president fumed that since the Ellisons bought Paramount, parent of CBS, \u201c60 Minutes has actually gotten WORSE!\u201d<\/p>\n

\n\tRead the letter from Reps. Liccardo and Pressley:<\/p>\n

\n\tDavid Zaslav
President and Chief Executive Officer
Warner Bros. Discovery
230 Park Avenue South
New York, NY 10003<\/p>\n

\n\tDear Mr. Zaslav:<\/p>\n

\n\tWe write regarding recent reports that Paramount Skydance, supported by significant foreign investors, is pursuing a potential acquisition of Warner Brothers Discovery (\u201cWarner\u201d).<\/p>\n

\n\tThis transaction raises national security concerns because it could transfer substantial influence over one of the largest American media companies to foreign-backed financiers. If Warner proceeds with any transaction involving foreign sovereign or state-linked investors, we demand that the company immediately file a notice with the Committee on Foreign Investment in the United States (CFIUS) and submit the transaction for a full national security review.<\/p>\n

\n\tA merger of this scale, involving two of the nation\u2019s most influential media companies, carries implications far beyond ordinary commercial consolidation. Warner\u2019s platforms reach tens of millions of American households through HBO, Max, CNN, Warner Bros. Pictures, Discovery, and numerous digital and cable properties. They also shape the news, entertainment, and cultural content consumed by the American public. Any transaction providing foreign investors with governance rights, access to non-public data, or indirect influence over content distribution creates vulnerabilities that foreign governments could exploit.<\/p>\n

\n\tPublic reporting indicates that Paramount Skydance\u2019s financing includes substantial foreign participation, including sovereign-wealth capital funds and investors with documented ties to foreign governments. These investors include Emirati and Qatari funds, as well as Affinity Partners, a private equity fund founded by Jared Kushner and backed by a $2 billion investment from the Saudi Public Investment Fund. The fund is controlled by Crown Prince Mohammed bin Salman, whom (according to the declassified 2021 report of the U.S. Director of National Intelligence) ordered the murder of U.S. resident and Washington Post journalist Jamal Khashoggi.<\/p>\n

\n\tThese investors, by virtue of their financial position or contractual rights, could obtain influence \u2014 direct or indirect \u2014 over business decisions that bear upon editorial independence, content moderation, distribution priorities, or the stewardship of Americans\u2019 private data. Even absent overt control, such influence can present a national-security threat when foreign state-linked entities have strategic interests inconsistent with those of the United States<\/p>\n

\n\tGiven these risks, Warner\u2019s Board of Directors must treat this transaction not only as a commercial proposal but as a matter with substantial national security consequences. CFIUS\u2019s mandate is clear: The Committee evaluates how foreign investment could harm U.S. national security and seeks to address those risks. A transaction of this nature \u2014 combining a major media portfolio with foreign-backed capital \u2014 plainly warrants that scrutiny. A failure to file with CFIUS when foreign investors may obtain control or meaningful contractual rights would represent a serious lapse in fiduciary judgment and could expose the company to significant regulatory and reputational harm.<\/p>\n

\n\tUnder Section 4565 of Title 50 of the U.S. Code, CFIUS jurisdiction to review acquisition of this nature arises under either of two grounds: a transaction which conveys \u201ccontrol\u201d of the business to foreign actors, or an acquisition which could give non-controlling foreign entities access to Americans\u2019 \u201csensitive personal data.\u201d<\/p>\n

\n\tCFIUS regulations define \u201ccontrol\u201d broadly, and the law does not require the acquisition of a majority interest in the US business. Rather, CFIUS concerns arise where a foreign actor\u2019s minority interests confer a significant ability to influence \u201cimportant matters\u201d related to the US business. Alternatively, the law authorizes CFIUS review where foreign entities could obtain access to Americans\u2019 \u201csensitive personal data,\u201d including viewing histories, behavioral profiles, frequently used passwords, credit card and financial data, and personal device and location information.<\/p>\n

\n\tWe therefore expect that, should Warner pursue negotiations with Paramount Skydance or any other buyer financed by foreign sovereign investors, the company will file a voluntary notice with CFIUS prior to executing any binding agreement. Moreover, if CFIUS identifies risks requiring mitigation, we expect Warner to commit to implementing those measures in full and to inform shareholders, Congress, and the public of the steps taken to safeguard national security. Future Congresses, moreover, will review many of the decisions of the current Administration, and may recommend that regulators push for divestitures, which would undermine the strategic logic of this merger. We urge the Board to weigh these national security and regulatory liabilities in evaluating a transaction burdened by uncertain but potentially extensive mitigation obligations, foreign influence risks, or adverse regulatory action.<\/p>\n

\n\tThe American public relies on Warner\u2019s platforms for news, entertainment, and vital information. Allowing foreign-backed investors to obtain influence over this ecosystem without the fullest possible scrutiny would be irresponsible and dangerous. As stewards of one of the nation\u2019s most important media institutions, the Board of Directors has a responsibility to ensure that any potential transaction protects both national security and the long-term interests of Warner Bros. Discovery\u2019s shareholders.<\/p>\n

\n\tThank you for your prompt attention to this matter. We respectfully request a response to this letter by December 22, 2025.<\/p>\n

\n\tSincerely,
Sam T. Liccardo
Member of Congress
Ayanna Pressley
Member of Congress<\/p>\n

CC:
Samuel A. Di Piazza, Jr., Chair of the Board
Richard W. Fisher, Director
Paul A. Gould, Director
Debra L. Lee, Director
Anton J. Levy, Director
Joey Levin, Director
Kenneth W. Lowe, Director
John C. Malone, Chairman Emeritus; Director
Fazal Merchant, Director
Anthony J. Noto, Director
Paula A. Price, Director
Daniel E. Sanchez, Director
Geoffrey Y. Yang, Director
David M. Zaslav, Director
Hon. Scott Bessent, Secretary, U.S. Treasury<\/p>\n","protected":false},"excerpt":{"rendered":"Two Democratic lawmakers \u2014 U.S. Reps. Sam Liccardo (D-Calif.) and Ayanna Pressley (D-Mass.) \u2014 have expressed \u201cserious national…\n","protected":false},"author":2,"featured_media":341863,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[54],"tags":[88,48502,92,10343],"class_list":{"0":"post-341862","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tv","8":"tag-entertainment","9":"tag-paramount-skydance","10":"tag-tv","11":"tag-warner-bros-discovery"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/341862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=341862"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/341862\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/341863"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=341862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=341862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=341862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}