Democratic lawmakers are demanding scrutiny into Paramount Skydance’s financial backers amid rising concerns about potential foreign influence of U.S. media properties.
In a letter this week to Federal Communications Commission Chairman Brendan Carr, seven U.S. senators criticized Carr’s suggestion that Paramount’s $111-billion bid for Warner Bros. Discovery, backed by billionaire Larry Ellison and his family, was on a fast track to receive FCC approval with scant oversight.
Such complicated mergers typically receive an intense government review. The proposed merger would combine two legendary film studios, dozens of cable channels, HBO, CBS and two major news organizations, CNN and CBS News.
Ellison and his son, David, who chairs Paramount, are friendly with President Trump, who has long agitated for changes at CNN, which is slated to be absorbed by Paramount.
The company has said it expects to complete the deal by the end of September.
The Democrats expressed concerns that the fix may be in. Trump’s Justice Department has been reviewing whether the merger would violate U.S. antitrust laws, but a key deadline passed last month without comment from the department’s antitrust regulators.
Also at issue is the Middle Eastern money the Ellison family has been expecting to pull off Paramount’s leveraged buyout of its larger entertainment company rival. The acquisition would leave the combined company with nearly $80 billion in debt.
Late last year, Paramount disclosed that it had lined up $24 billion from wealth funds representing the royal families of Saudi Arabia, Qatar and Abu Dhabi, who would then become equity partners in the combined company.
Paramount has described the funds as largely passive investors, saying the royal families would not have input into corporate decision-making. They also would not control seats on the Paramount-Warner board.
Congressional Democrats previously have warned about potential national security concerns. The senators, led by Cory Booker (D-N.J.) and Chuck Schumer (D-N.Y.), remain concerned, particularly because the transaction will help shape the future of Hollywood production and the direction of key news outlets, including CNN, which maintains a strong presence around the world.
Members of the party have called on Carr to conduct “a full and independent” analysis of the foreign ownership interests before signing off on the merger. The FCC could play an important role, they said, because the tie-up includes Paramount-owned CBS, which holds FCC broadcast station licenses.
Paramount declined to comment. FCC officials did not respond to a request for comment.
Booker and Schumer pointed to Carr’s comments at an industry conference in Spain earlier this month. During an appearance at the Mobile World Congress, Carr suggested the Paramount-Warner deal could be swiftly approved because the foreign investment would warrant only a “very quick, almost pro forma review,” Carr reportedly said.
The FCC has a duty to examine foreign ownership, the lawmakers said, referencing the U.S. Communications Act, which forbids owners from outside the U.S. from holding more than 25% of the equity or voting interests in an entity that maintains an FCC license.
The lawmakers mentioned the FCC’s move earlier this year to tighten its foreign ownership framework to bolster transparency.
Paramount has not yet disclosed its final list of equity partners.
The company previously disclosed its proposed partners in Securities & Exchange Commission filings. However, last month, the composition of the Paramount-Warner deal changed when Larry Ellison agreed to fully guarantee the $45.7-billion in equity needed to finance the $31-a-share buyout of Warner investors.
Before Ellison stepped up, Warner board members had expressed concerns about Paramount’s financing. The tech billionaire’s increased involvement helped carry the Paramount deal over the finish line. Netflix bowed out Feb. 26, ceding the prize to Paramount.
Still, Paramount is expected to line up billions of dollars from outside investors.
It would be significant if Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co., contributed $24 billion to the deal, the Democrats wrote.
“This is not incidental capital, it represents roughly one-fifth of the total transaction value,” Booker and the others wrote. “And it is not clear that this will be the only foreign investment.”
Initially, Paramount included Chinese technology company Tencent Holdings as a minority investor, but Paramount later removed Tencent from the investor pool due to concerns about its problematic status — it has been blacklisted by the U.S. Department of Defense.
Bloomberg News reported earlier this month that Tencent might return to the fold.
“This constellation of foreign investment from China and from Gulf States, with complex and sometimes competing relationships with the United States, demands rigorous, not perfunctory review,” Booker and the others wrote.
The letter also was signed by Sens. Dick Durbin (D-Ill.), Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.), Sheldon Whitehouse (D-R.I.) and Mazie K. Hirono (D-Hawaii).
They keyed in on the role of Saudi Arabia’s sovereign wealth fund, saying it was controlled by Crown Prince Mohammed bin Salman “whom the U.S. intelligence community concluded ordered the murder of Washington Post journalist Jamal Khashoggi in 2018.”
The proposed $24-billion investment would give “these governments a significant financial stake in the future content, licensing, and strategic decisions of a combined entity that includes some of the most-watched news and entertainment networks in America.”
It is also unclear whether the current tensions in the Middle East over the Iran war will have an impact on Paramount’s investor syndicate.
Trump’s son-in-law Jared Kushner, a proposed Paramount investor, also withdrew late last year.
Paramount shares held steady at $9.17. The company’s stock is down 31% since Feb. 27, when the company prevailed in the Warner auction.
Democrats call for review of Paramount’s Middle Eastern financial backers
Democratic lawmakers are demanding scrutiny into Paramount Skydance’s financial backers amid rising concerns about potential foreign influence of U.S. media properties.
In a letter this week to Federal Communications Commission Chairman Brendan Carr, seven U.S. senators criticized Carr’s suggestion that Paramount’s $111-billion bid for Warner Bros. Discovery, backed by billionaire Larry Ellison and his family, was on a fast track to receive FCC approval with scant oversight.
Such complicated mergers typically receive an intense government review. The proposed merger would combine two legendary film studios, dozens of cable channels, HBO, CBS and two major news organizations, CNN and CBS News.
Ellison and his son, David, who chairs Paramount, are friendly with President Trump, who has long agitated for changes at CNN, which is slated to be absorbed by Paramount.
The company has said it expects to complete the deal by the end of September.
The Democrats expressed concerns that the fix may be in. Trump’s Justice Department has been reviewing whether the merger would violate U.S. antitrust laws, but a key deadline passed last month without comment from the department’s antitrust regulators.
Also at issue is the Middle Eastern money the Ellison family has been expecting to pull off Paramount’s leveraged buyout of its larger entertainment company rival. The acquisition would leave the combined company with nearly $80 billion in debt.
Late last year, Paramount disclosed that it had lined up $24 billion from wealth funds representing the royal families of Saudi Arabia, Qatar and Abu Dhabi, who would then become equity partners in the combined company.
Paramount has described the funds as largely passive investors, saying the royal families would not have input into corporate decision-making. They also would not control seats on the Paramount-Warner board.
Congressional Democrats previously have warned about potential national security concerns. The senators, led by Cory Booker (D-N.J.) and Chuck Schumer (D-N.Y.), remain concerned, particularly because the transaction will help shape the future of Hollywood production and the direction of key news outlets, including CNN, which maintains a strong presence around the world.
Members of the party have called on Carr to conduct “a full and independent” analysis of the foreign ownership interests before signing off on the merger. The FCC could play an important role, they said, because the tie-up includes Paramount-owned CBS, which holds FCC broadcast station licenses.
Paramount declined to comment. FCC officials did not respond to a request for comment.
Booker and Schumer pointed to Carr’s comments at an industry conference in Spain earlier this month. During an appearance at the Mobile World Congress, Carr suggested the Paramount-Warner deal could be swiftly approved because the foreign investment would warrant only a “very quick, almost pro forma review,” Carr reportedly said.
The FCC has a duty to examine foreign ownership, the lawmakers said, referencing the U.S. Communications Act, which forbids owners from outside the U.S. from holding more than 25% of the equity or voting interests in an entity that maintains an FCC license.
The lawmakers mentioned the FCC’s move earlier this year to tighten its foreign ownership framework to bolster transparency.
Paramount has not yet disclosed its final list of equity partners.
The company previously disclosed its proposed partners in Securities & Exchange Commission filings. However, last month, the composition of the Paramount-Warner deal changed when Larry Ellison agreed to fully guarantee the $45.7-billion in equity needed to finance the $31-a-share buyout of Warner investors.
Before Ellison stepped up, Warner board members had expressed concerns about Paramount’s financing. The tech billionaire’s increased involvement helped carry the Paramount deal over the finish line. Netflix bowed out Feb. 26, ceding the prize to Paramount.
Still, Paramount is expected to line up billions of dollars from outside investors.
It would be significant if Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co., contributed $24 billion to the deal, the Democrats wrote.
“This is not incidental capital, it represents roughly one-fifth of the total transaction value,” Booker and the others wrote. “And it is not clear that this will be the only foreign investment.”
Initially, Paramount included Chinese technology company Tencent Holdings as a minority investor, but Paramount later removed Tencent from the investor pool due to concerns about its problematic status — it has been blacklisted by the U.S. Department of Defense.
Bloomberg News reported earlier this month that Tencent might return to the fold.
“This constellation of foreign investment from China and from Gulf States, with complex and sometimes competing relationships with the United States, demands rigorous, not perfunctory review,” Booker and the others wrote.
The letter also was signed by Sens. Dick Durbin (D-Ill.), Elizabeth Warren (D-Mass.), Richard Blumenthal (D-Conn.), Sheldon Whitehouse (D-R.I.) and Mazie K. Hirono (D-Hawaii).
They keyed in on the role of Saudi Arabia’s sovereign wealth fund, saying it was controlled by Crown Prince Mohammed bin Salman “whom the U.S. intelligence community concluded ordered the murder of Washington Post journalist Jamal Khashoggi in 2018.”
The proposed $24-billion investment would give “these governments a significant financial stake in the future content, licensing, and strategic decisions of a combined entity that includes some of the most-watched news and entertainment networks in America.”
It is also unclear whether the current tensions in the Middle East over the Iran war will have an impact on Paramount’s investor syndicate.
Trump’s son-in-law Jared Kushner, a proposed Paramount investor, also withdrew late last year.
Paramount shares held steady at $9.17. The company’s stock is down 31% since Feb. 27, when the company prevailed in the Warner auction.
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Senate Republicans block Democrat’s war powers resolution
March 19 (UPI) — Senate Republicans have blocked a Democrat-led effort to curb President Donald Trump‘s powers to wage war against Iran, as the nearly three-week-old conflict escalates and rattles global energy markets.
The Senate voted 53-47 mostly along party lines Wednesday night to reject a resolution that would withdraw U.S. armed forces from conflict with Iran absent congressional approval.
Sen. Rand Paul of Kentucky was the only Republican to join his Democratic colleagues and vote in favor of the motion, while Democratic Sen. John Fetterman of Pennsylvania was the only member of his caucus to vote against it.
“We do not have a king. We are a democratic republic with a constitution and no one is above the law,” Sen. Cory Booker, D-N.Y., said Wednesday from the Senate floor before the vote.
“This president cannot take us to war without coming through this body. He is not able to do that unless this body supplicates itself before that man and surrenders its responsibilities.”
Senate Democrats forced the vote on the resolution that Booker sponsored as the conflict escalated on Wednesday, with Iran attacking Persian Gulf energy facilities in retaliation for Israel striking its South Pars gas field.
Thirteen American service members have been killed, and another 200 have been wounded so far in the conflict, which is threatening to become a regional war as Iran has retaliated by attacking U.S. bases and its allies in the Middle East.
Democrats of both chambers of Congress have been attempting to rein in Trump’s war powers through resolutions since the war with Iran began late last month. They argue the United States’ ongoing war with Iran violates the Constitution, which mandates that only Congress has the power to declare war.
The conflict has also seen the cost of oil surge. On Thursday, Brent crude reached nearly $110 a barrel, up from an average $71 before the war began on Feb. 28.
Wednesday’s vote is the third time — and the second by the Senate — that the majority Republicans have blocked war powers motions.
From the floor, Senate Minority Leader Chuck Schumer said, “Enough is enough.”
“To my Republican colleagues: The American people are watching. They oppose this war. They expect us to do our jobs,” he said.
“No more senseless wars in the Middle East. No more gas prices shooting through the roof. No more U.S. service members fighting and dying for in endless wars.”
Though the war has exposed fissures in the Republican Party, its members still mostly stand behind the president, who campaigned on ending conflicts and warning Americans that the Democrats would wage war with Iran if they won the White House.
Sen. Lindsey Graham, a staunch Trump ally, argued on the Senate floor that the war is intended to prevent Iran from securing a nuclear weapon.
He said during the prior negotiations the United States offered Iran what he called “a lifetime fuel supply for free” if the Islamic regime agreed to hand over its cache of highly enriched uranium. It is believed that Iran had enriched uranium to 60%, according to a recent International Atomic Energy Agency report, which is below weapons grade enrichment at 90%.
Graham compared the Islamic regime of Iran to Nazi Germany.
“If you do not see this as an imminent threat, then you’re blind from your hatred of Trump,” he said.
“There are people on the left and people in my own party that are more afraid of Trump being successful than the Ayatollah having a nuclear weapon. That’s sick.”
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