Warren, Blumenthal Raise National Security Concerns Related to Potential Middle Eastern Funding of Warner Bros. Sale; Push Bessent to Conduct Foreign Investment Committee Review

Warren, Blumenthal Raise National Security Concerns Related to Potential Middle Eastern Funding of Warner Bros. Sale; Push Bessent to Conduct Foreign Investment Committee Review

Paramount Skydance bid for Warner Bros. reportedly funded by Saudi, Qatari, Abu Dhabi government investment funds and could give foreign entities access to Americans' sensitive personal data, influence over giant media conglomerate

"The American public deserves assurances that CFIUS is playing its role in reviewing whether these investments could pose a risk to U.S. national security and how best to address such risks."

Text of Letter (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, and Senator Richard Blumenthal (D-Conn.) pressed Scott Bessent, Treasury Secretary and Chair of the Committee on Foreign Investment in the United States (CFIUS), following reports that, if Warner Bros. is sold to Paramount-Skydance, the deal could be funded by foreign government investors, raising potential national security risks. The lawmakers pressed Bessent to carefully examine whether the deal is subject to a CFIUS review, and if so, to conduct it in a comprehensive, thorough, and non-politicized manner.

"The American public deserves assurances that CFIUS is playing its role in reviewing whether these investments could pose a risk to U.S. national security and how best to address such risks. The public also deserves assurances that any reviews are conducted in an unbiased fashion without regard to political favoritism by President Trump or any other Administration official," wrote the lawmakers.

Paramount-Skydance has mounted a hostile takeover bid for Warner Bros. and is locked in a battle with Netflix over which of these two will gain the upper hand for the company. Sens. Warren and Blumenthal, in their letter that was sent earlier this month, noted that, "This deal-regardless of which of the three bidders wins-will likely raise significant antitrust concerns and require close scrutiny by the Department of Justice."

But they noted additional concerns because the Paramount-Skydance bid for Warner Bros. is reportedly backed in part by the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. If such a sale were to go through, it could potentially provide foreign entities with access to the sensitive personal data of millions of Americans and significant influence over one of the nation's largest media and entertainment conglomerates. CFIUS is responsible for mitigating national security risks of specific types of foreign investments in the United States and, in certain circumstances, blocking foreign acquisitions of American companies or technologies.

The Warner Bros. bidding war is already clouded by corruption concerns. Paramount-Skydance, reportedly the preferred bidder of the Trump administration, has donated $16 million to the Trump Presidential Library and apparently agreed to a secret side deal to run Trump-friendly ads.

"Last month, we wrote to the Department of Justice seeking assurances that, despite the appearance of corruption and favoritism, the Department would conduct a thorough, independent, and fact-based antitrust review of the merger, and would not be swayed by politics. We write to you with similar concerns about the role that CFIUS may play in reviewing any merger," wrote the lawmakers.

Senator Warren has consistently fought back against corrupt corporate media consolidation:

• On December 16, Senator Warren pushed FCC, DOJ to closely scrutinize Nexstar's acquisition of Tegna and to block this deal if they determine that it violates federal telecommunications or antitrust laws.

• On December 8, Senator Warren responded to news of Paramount-Skydance's hostile bid for Warner Bros., calling it a "five-alarm antitrust fire."

• On December 5, Senator Warren responded to news of Netflix's winning bid for Warner Bros., calling it an "anti-monopoly nightmare."

• On November 21, while on The Late Show with Stephen Colbert, Senator Warren called out Paramount Skydance CEO David Ellison on his own network.

• On November 19, Senators Warren, Bernie Sanders (I-Vt.), and Richard Blumenthal (D-Conn.) warned that a potential Warner Bros. deal could be tainted by political favoritism and corruption.

• On October 10, Senator Elizabeth Warren (D-Mass.), Senator Bernie Sanders (I-Vt.), and Senator Ron Wyden (D-Ore.) questioned Skydance's refusal to address President Donald Trump's reported secret side deal.

• On August 1, Senator Warren released a statement in response to Paramount's and Skydance's responses to her letters to each of the companies, describing the responses as "dodgy" and calling for "a full, independent investigation" into whether the companies or their executives engaged in any criminal behavior connected to the approval of the companies' multi-billion-dollar merger.

• On July 24, Senator Warren responded to the Trump administration's approval of the Paramount-Skydance megamerger, saying "bribery is illegal no matter who is president."

• On July 23, Senator Warren published an op-ed in Variety: "Elizabeth Warren on Colbert 'Late Show' Cancellation: Is the Paramount Trump Payoff a Bribe?"

• On July 21, Senators Warren, Sanders (I-Vt.), and Wyden (D-Ore.) pressed David Ellison, CEO of Skydance, about reports of a secret deal between Skydance and President Trump-and how it may be related to Paramount's recent multi-million-dollar settlement agreement with Trump.

• On July 17, Senators Warren and Richard Blumenthal (D-Conn.), along with Representatives Jared Moskowitz (D-Fla.), Jamie Raskin (D-Md.), Melanie Stansbury (D-N.M.), and lawmakers in Congress, unveiled the Presidential Library Anti-Corruption Act to close loopholes that allow presidential libraries to be used as tools for corruption and bribery.

• On July 15, Senator Warren released a new report exposing how companies, special interests, and foreign governments may be pledging donations to President Trump's future Presidential Library as a corrupt tool to secure favorable outcomes from his administration.

• On July 2, Senator Warren called for an investigation into Paramount's settlement with Trump.

• On May 19, Senators Warren, Sanders, and Wyden wrote to Shari Redstone, Chair of Paramount, with concerns regarding whether Paramount may be engaging in potentially illegal conduct involving the Trump Administration in exchange for approval of its megamerger with Skydance.

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