Lawmakers Demand DOJ and Treasury Scrutinize Antitrust and National Security Concerns with Paramount-WBD Merger

Full Letter Here.

WASHINGTON, D.C. - Today, Senators Elizabeth Warren, Richard Blumenthal and Congressman Sam Liccardo were joined by 11 House members urging the Department of Justice (DOJ) and the U.S. Treasury to closely examine antitrust and national security risks posed by the proposed acquisition of Warner Brothers Discovery (WBD) by Paramount. The letter represents the fourth effort by Congressman Sam Liccardo (CA-16) raising concerns about the transaction.

If approved, the merger would reduce the number of major studios from five to four, concentrating control over content creation and distribution to a single company. Paramount already owns CBS, which drew criticism for suppressing stories that run counter to the Trump administration. Media experts warn that CNN and WBD's other properties could face similar pressure under a merged company.

"This is a bad deal for consumers, and for the freedom of the pressin America. It reduces competition and hands foreign-backed investors greater control over major American news networks," said Liccardo. "The Department of Justice has blocked similar mega-mergers before and should apply the same rigorous scrutiny here. Major American news outlets must not be owned and influenced by Saudi princes or Chinese conglomerates."

The deal also raises foreign investment concerns. Paramount's bid relies heavily on financing from Middle-East based sovereign wealth funds and reportedly from Tencent Holdings Ltd, which has been designated by the U.S. government as a Chinese military company. Lawmakers again urged the administration to trigger a review by the Committee on Foreign Investment in the United States (CFIUS).

"Congress has a responsibility to ensure that merger enforcement in concentrated creative industries-particularly transactions involving substantial foreign capital-is conducted rigorously and in strict adherence to federal law," reads the letter. "The structural reduction in independent studios, the Pay-1 foreclosure risks, and the downstream impact on exhibitors warrant thorough and transparent review."

Although the Republican majority has not indicated plans to investigate the deal, Democrats caution the issue will not disappear. "Finally, we request that both DOJ and Treasury preserve all communications, memoranda, electronic records, and calendar entries related to this transaction, from both official and personal devices of career and political staff, to ensure that the review process was conducted consistent with established procedures, free from undue influence, and properly documented," write the lawmakers.

Preservation signals lawmakers' intent to pursue antitrust oversight when Democrats regain committee gavels-or the White House.

House Cosigners: Reps. Cleo Fields (LA-06), Andrea Salinas (OR-06), Zoe Lofgren (CA-18), Morgan McGarvey (KY-03), Yassamin Ansari (AZ-03), Lori Trahan (MA-03), Dan Goldman (NY-10), Mary Gay Scanlon (PA-05), Sarah McBride (DE-AL), Deborah Ross (NC-02), and Jimmy Gomez (CA-34).

###