Free Press Urges FCC to Reject Paramount Skydance’s Request for Massive Foreign Investment in Merged Company from Governments Hostile to Press Freedom

WASHINGTON — On May 27, Free Press urged the FCC to reject Paramount Skydance’s petition to waive the Communications Act’s prohibition against the significant foreign investment that’s part of the massive media company’s proposal to acquire Warner Bros. Discovery. 

If Paramount’s $110 billion acquisition of Warner Bros. Discovery survives state antitrust review, at least half (or 49.5 percent) the ownership of the resulting colossus will end up in the hands of foreign investors, including the sovereign wealth funds of three Middle Eastern governments. Paramount is seeking permission for these funds to eventually control 100 percent of the company.

Such a transfer requires Paramount to seek an FCC waiver of the Communications Act’s cap on foreign ownership of domestic broadcast licenses since the investment in the merged company would change ownership stakes in the CBS television-station licenses Paramount already holds. 

The foreign governments — Abu Dhabi, Qatar and Saudi Arabia — have “a terrible track record when it comes to respecting the freedom of the press and its role in preserving democratic values,” reads the filing. “And these particular foreign investment funds have a track record of using investment as a tool of soft power, sinking money into high-profile endeavors in order to whitewash their poor human rights records, including a very poor record when it comes to press freedom.”

Free Press urges the FCC to reject Paramount’s waiver request and enforce existing law that restricts foreign ownership to no more than 25 percent of a given company.

Matt Wood, Free Press’ vice president of policy, said:

“The billionaire owners behind Paramount’s recent merger frenzy have gone to great lengths to assure regulators that the foreign governments financing its bid for Warner Bros. Discovery will have no say over the many entertainment, news and information outlets that Paramount already owns and the new ones it wants to buy — including CNN. But foreign governments like these don’t just write checks for tens of billions of dollars in exchange for a share of a business with declining revenues.

“Paramount’s Ellison family has already cozied up to President Trump in ways that should shock and sicken anyone who values facts-based journalism. The Ellisons have promised sweeping changes to the signature news outlets — like CNN — they hope to acquire from this deal, and they’ve already trashed CBS News. This willingness to bow down to government leaders instead of holding them accountable is an incredible danger to democracy. Bringing even more outside money into this already toxic equation will further erode the localism, quality and integrity of these once-proud journalistic institutions.

“We strongly urge the Commission to enforce the law and reject Paramount’s attempt to evade the foreign ownership cap. These governments would have immense leverage over Paramount, with U.S. audiences — and our fragile democracy — paying the ultimate price.”