A group of U.S. senators is calling for a federal review of foreign financing tied to Paramount’s acquisition of Warner Bros. Discovery, escalating scrutiny of a deal that has already drawn attention for its scale and structure.
In a letter to Federal Communications Commission chairman Brendan Carr, seven Democratic senators said the agency should conduct a “thorough review” of the transaction, citing concerns about billions of dollars in backing from overseas investors.
The lawmakers, led by Sen. Cory Booker, pointed to funding tied to sovereign wealth funds in Saudi Arabia, Qatar, and the United Arab Emirates, as well as renewed participation by Chinese tech company Tencent.
“This constellation of foreign investment… demands rigorous, not perfunctory, review,” the senators wrote, emphasizing the size and origin of the capital involved.
They added that the financing creates potential avenues for influence over major media properties, including CNN and HBO, which are part of the Warner Bros. Discovery portfolio.
The request puts additional pressure on regulators at a time when the deal is already navigating multiple layers of oversight. Paramount has previously stated that the foreign investors will not hold governance rights, including board seats or voting power, and therefore should not trigger a national security review under existing frameworks. The company has argued that the structure keeps the investment passive.
Lawmakers are challenging that premise. In their letter, they said the absence of formal control does not eliminate the potential for influence, particularly given the size of the investment.
They also raised concerns about Tencent’s involvement, noting its ties to Chinese regulatory requirements and intelligence laws. According to the senators, that relationship “creates multiple avenues for foreign influence over America’s journalists and content.”
The FCC has not publicly responded to the request. Paramount also did not immediately comment.
The regulatory push follows months of developments surrounding the sale of Warner Bros. Discovery. The process began when Paramount pursued a full acquisition of the company, triggering a competitive bidding environment that later included Netflix.
Netflix executives said the decision came down to valuation discipline, and the company ultimately exited the process, collecting a $2.8 billion termination fee.
With Netflix out, Paramount finalized an agreement to acquire Warner Bros. Discovery for approximately $111 billion. The transaction includes Warner’s film and television studios, streaming platforms, and global media assets.
Subsequent disclosures revealed that a significant portion of the deal’s financing—previously estimated at around $24 billion—comes from Middle Eastern sovereign wealth funds. That detail has become a focal point for regulators and policymakers evaluating the transaction.
