A Democratic lawmaker, Rep. Sam Liccardo, is urging Paramount to voluntarily submit any acquisition of Warner Bros. Discovery to a federal foreign ownership review, even if the company doesn't believe it's technically necessary. In a letter to Paramount's David Ellison, Liccardo emphasized that voluntary filing would demonstrate good faith, enhance public trust, and provide assurance of the vetting of national-security, private data, and influence risks. This comes as Warner Bros. Discovery has rejected Paramount's offers for its assets, opting instead for a deal with Netflix. The streaming giant plans to acquire WBD's studio and streaming assets, with cable channels spun off into a separate entity. Earlier this week, Paramount filed a lawsuit against WBD, seeking specific information on why its $30 per share bid was rejected. It also plans a proxy fight to install its own slate of directors. Concerns have been raised on Capitol Hill about the potential combination of Paramount and Netflix with WBD. Last month, Liccardo and Rep. Ayanna Pressley sent a letter to WBD CEO David Zaslav, expressing concerns about foreign investors in Paramount's financing. The letter highlighted that updated SEC filings indicate Paramount's evolving financing structure includes substantial foreign participation, including entities controlled by the Saudi Public Investment Fund, which is under the control of Saudi Crown Prince bin Salman. The Committee on Foreign Investment in the United States has jurisdiction to review the transaction, even if Paramount claims its investors won't have control over the combined company. The law defines 'control' broadly, and the acquisition of a majority interest in the U.S. business is not required. Concerns arise where a foreign actor's minority interests confer significant influence over 'important matters' related to the American entity. The law also authorizes CFIUS review where foreign entities could obtain access to sensitive personal data, including viewing histories, behavioral profiles, and personal device and location information. A Paramount spokesperson did not immediately respond to a request for comment. Liccardo asked Ellison a series of questions, including whether the transaction will include protections to ensure foreign investors have no ability to influence editorial decisions, content, news coverage, or distribution priorities. The congressman emphasized that given the nature and reach of Warner's news and media companies, which hold the sensitive personal data of over 100 million American citizens, the acquisition raises serious national security, data protection, and editorial independence concerns that warrant full transparency and regulatory scrutiny.
