U.S. Senators Elizabeth Warren and Richard Blumenthal have criticized the Trump administration for not initiating a national security review of Paramount Skydance's proposed $111 billion acquisition of Warner Bros. Discovery. The deal is backed by billions from Middle Eastern sovereign wealth funds, raising concerns about foreign influence in American media. The senators urged the Committee on Foreign Investment in the United States to examine potential risks.
Sens. Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.) expressed frustration with the Trump administration's failure to launch a national security review of Paramount Skydance's deal to acquire Warner Bros. Discovery. The proposed $111 billion pact, accepted by Warner Bros. Discovery's board last month, includes funding from Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority (QIA), and the Abu Dhabi Investment Authority (ADIA). An SEC filing from December 1 indicated $24 billion from these funds, though the exact current contribution remains undisclosed after Netflix declined to counter Paramount’s $31 per share offer.
The Committee on Foreign Investment in the United States (CFIUS), chaired by Treasury Secretary Scott Bessent, reviews foreign investments for national security threats. On December 4, Warren and Blumenthal wrote to Bessent requesting a review of the foreign investors' involvement. They received a response on February 27 from Mason Champion, acting principal deputy assistant secretary in the Treasury Department’s Office of Legislative Affairs, which affirmed CFIUS's commitment to assessing risks but did not confirm a review for this deal.
Warren stated to Variety, “Given the cloud of corruption surrounding the Trump administration’s review of this deal from Day One, it’s no surprise that Trump’s Treasury Department is sticking its head in the sand instead of investigating the national security risks of $24 billion from Middle Eastern sovereign wealth funds apparently flooding this deal. It’s American consumers who will pay the price.” Blumenthal added, “I have no confidence that [Treasury] Secretary [Scott] Bessent, or Attorney General [Pam] Bondi, will enforce our antitrust and national security laws when it comes to President Trump’s financial backers. The cost of that rubber-stamp will be higher prices on consumers, substantial job loss in Hollywood, and Gulf countries buying even more influence over Americans’ entertainment.”
Paramount Skydance has claimed in SEC filings that the funds have agreed to forgo governance rights, including board representation, arguing the deal falls outside CFIUS jurisdiction. Netflix co-CEO Ted Sarandos, before his company withdrew from bidding, called the involvement a “bad idea,” noting the funds come from a region “not very big on the First Amendment” and questioning the lack of influence despite the investment level.
Other Democrats, including Reps. Sam Liccardo (D-Calif.) and Ayanna Pressley (D-Mass.), raised similar concerns in a December 10 letter to Warner Bros. Discovery executives, highlighting ties to Saudi Crown Prince Mohammed bin Salman and potential future regulatory scrutiny.
