Senate Democrats have urged FCC Chairman Brendan Carr to investigate the foreign funding involved in the proposed acquisition of Warner Bros. Discovery (NASDAQ:WBD) by Paramount Skydance (NASDAQ: PSKY).

Senate Democrats, including Minority Leader Chuck Schumer (D-N.Y), Minority Whip Dick Durbin (D‑IL), and Senators Cory Booker (D‑NJ), Richard Blumenthal (D‑CT), Mazie Hirono (D‑HI), Sheldon Whitehouse (D‑RI), and Sen. Elizabeth Warren (D-Mass.), have written to Carr and voiced concerns regarding the foreign investment from China and Gulf states in the merger.

"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," wrote the Senators.

The senators stressed that the current deal structure limits their ability to influence the governance or management of the merged company. Yet, the significant equity contributions from these foreign investors, along with a report of renewed investment talks between Chinese tech giant Tencent (OTC:TCEHY) and the Ellisons, who control Paramount, have raised concerns about the future of Warner-owned CNN.

The senators insisted on the need for careful independent verification of Paramount’s assertions that these investors will not hold any governance rights. They cautioned that even as non-governing partners, the sizable investment could grant these foreign entities significant influence over CNN’s editorial decisions and business strategies.

Paramount Skydance and Warner Bros. Discovery did not immediately respond to Benzinga’s request for comment.

Lawsuit, Politics Surround Paramount Deal

This development comes in the wake of a lawsuit against the Ellisons and Paramount, which alleges a personal guarantee from President Donald Trump for the acquisition. The lawsuit does not name Trump as a defendant but details multiple claims of his involvement in the merger, which the White House has denied.

At the same time, Netflix (NASDAQ:NFLX) Co-CEO Ted Sarandos told POLITICO last week that “political dynamics” around the WBD acquisition deal, complicated the narrative but did not affect outcomes. He denied any political interference in it.

Netflix withdrew its offer to acquire Warner Bros. Discovery after declining to raise its bid, clearing the way for Paramount Skydance's roughly $111 billion acquisition to proceed, subject to regulatory and shareholder approval.

Meanwhile, Senator Elizabeth Warren has been demanding clarity on the fate of millions pledged by major companies, including Paramount, to a future Trump Presidential Library after the original nonprofit managing the funds was dissolved.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.

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