Congressional Democrats say Paramount's bid for Warner raises 'serious national security concerns'

Congressional Democrats are sounding alarms implicit the heavy engagement of Saudi Arabian and different Middle Eastern royal families successful Paramount’s projected bid for Warner Bros. Discovery.

Warner Bros. Discovery owns CNN, HBO and the historical Warner Bros. movie and tv studios successful Burbank, down specified beloved American classics arsenic “Casablanca,” “Citizen Kane,” and Bugs Bunny, and blockbuster hits including “Harry Potter,” “Dirty Harry,” “The Matrix,” and “Friends.”

Late past week, the Larry Ellison controlled Paramount came up abbreviated successful the bidding for Warner Bros., successful part, implicit the Warner board’s concerns astir Paramount’s woody financing. On Monday, Paramount launched a hostile takeover of Warner Bros., appealing straight to Warner shareholders — asking them to merchantability their Warner banal to Paramount for $30 a share.

Paramount’s gambit has thrown the auction, and Warner board’s enactment of Netflix’s $72-billion deal, into doubt.

Paramount has agelong insisted that it represents the champion spouse for Warner Bros., successful part, due to the fact that of the Ellison family’s cozy relations with President Trump. The institution has trumpeted its quality to summation the blessing of the Trump administration.

Paramount’s bid is heavy backed by Saudi Arabia, Abu Dhabi and Qatar’s sovereign wealthiness funds. The 3 royal families person agreed to lend $24 cardinal — doubly the magnitude the Larry Ellison household has agreed to supply successful financing for Paramount’s projected $78-billion takeover of Warner Bros. Discovery, according to regulatory filings.

Trump son-in-law Jared Kushner’s backstage equity firm, Affinity Partners, would besides person an ownership stake.

On Wednesday, U.S. Reps. Sam T. Liccardo (D-San Jose) and Ayanna Pressley (D-Boston) called connected Warner Bros. committee to admit the consequences of selling the legendary company, which includes quality enactment CNN, to overseas governments.

“This transaction raises nationalist information concerns due to the fact that it could transportation important power implicit 1 of the largest American media companies to foreign-backed financiers,” Liccardo and Pressley wrote.

“Warner’s platforms scope tens of millions of American households done HBO, Max, CNN, Warner Bros. Pictures, Discovery, and galore integer and cablegram properties,” the lawmakers wrote. “They besides signifier the news, entertainment, and taste contented consumed by the American public.”

Transactions “foreign investors with governance rights, entree to non-public data, oregon indirect power implicit contented organisation creates vulnerabilities that overseas governments could exploit,” the lawmakers wrote.

Paramount Chairman and Chief Executive David Ellison connected the Paramount batch successful August.

(Paramount)

Paramount, successful its regulatory filings, said the 3 Middle Eastern families had agreed to springiness up voting rights and a relation successful the company’s decision-making — contempt contributing much than fractional the equity needed for the deal.

Representatives of Warner Bros. and Paramount declined to comment.

The Ellison household acquired Paramount successful August. David Ellison, the main executive, attended a White House meal past period to observe Saudi Crown Prince Mohammed bin Salman.

The engagement of bin Salman was concerning to the lawmakers.

“The money is controlled by Crown Prince Mohammed bin Salman, whom (according to the declassified 2021 study of the U.S. Director of National Intelligence) ordered the execution of U.S. nonmigratory and Washington Post writer Jamal Khashoggi,” the lawmakers wrote.

Over the weekend, Trump said the Netflix deal, which would springiness the streaming an adjacent much commanding beingness successful the industry, “could beryllium a problem.”