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

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Democratic members of Congress are expressing concerns that members of Saudi Arabia’s royal family, along with other royals from the Middle East, are heavily involved in Paramount’s potential purchase of Warner Bros. Discovery.

Warner Bros. Discovery owns CNN, HBO and the historic Warner Bros. film and television studios in Burbank, behind such beloved American classics as “Casablanca,” “Citizen Kane,” and Bugs Bunny, and blockbuster hits including “Harry Potter,” “Dirty Harry,” “The Matrix,” and “Friends.”

Paramount, led by Larry Ellison, recently lost out on a bid to acquire Warner Bros., largely because Warner’s board questioned how Paramount would finance the deal. In response, Paramount announced on Monday that it would attempt a hostile takeover of Warner Bros. by directly asking Warner shareholders to sell their stock to Paramount for $30 per share.

Paramount’s unexpected move has created uncertainty around the sale process and whether Warner’s board will approve the $72 billion deal with Netflix.

Hollywood Inc.

Larry Ellison, a major figure in the tech world, attempted to buy Warner Bros. Discovery, but Netflix won the deal. This has led to a potential legal battle that could significantly impact the future of the entertainment industry.

Paramount has consistently claimed to be the ideal partner for Warner Bros., largely due to the Ellison family’s close relationship with President Trump. They’ve publicly highlighted their ability to secure approval from the Trump administration.

Saudi Arabia, Abu Dhabi, and Qatar’s investment funds are providing significant financial support for Paramount’s offer to buy Warner Bros. Discovery. These funds have pledged $24 billion, which is double the $12 billion the Ellison family has committed to the $78 billion deal, as shown in official documents.

Jared Kushner, son-in-law of Donald Trump, has a private equity firm called Affinity Partners that would also be a part owner.

On Wednesday, Representatives Sam Liccardo of California and Ayanna Pressley of Massachusetts urged Warner Bros.’ board of directors to consider the potential risks of selling the company—including CNN—to governments based in other countries.

Liccardo and Pressley expressed worry that the deal could give significant control of a major U.S. media company to individuals funded by foreign entities, potentially impacting national security.

Hollywood Inc.

Okay, so Larry Ellison, the guy behind Oracle, really went for it and tried to buy Warner Bros. Discovery. Unfortunately for him, Netflix swooped in and won the deal. Now, it looks like we’re headed for a legal battle, and honestly, the outcome could completely change things in Hollywood. It’s a high-stakes situation, and I’m definitely keeping my eye on how this plays out.

As a huge movie and TV fan, I was reading about how much reach Warner Bros. Discovery actually has. It’s pretty mind-blowing – they’re in tens of millions of homes across the US through channels like HBO, Max, CNN, and all their movies and other content. Basically, they have a massive influence on what news, shows, and movies Americans like me are watching, and that shapes a lot of our culture.

Lawmakers expressed concern that deals involving foreign investors who have control, access to private information, or the ability to sway how content is shared could be exploited by foreign governments, creating security risks.

According to documents filed with regulators, three families from the Middle East have agreed to relinquish their voting power and involvement in company decisions, even though they are providing over half of the funds for the agreement.

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Paramount made a final offer of $30 per share late last week, but they didn’t receive a response, according to Paramount Chair David Ellison.

Representatives of Warner Bros. and Paramount declined to comment.

The Ellison family purchased Paramount in August. David Ellison, the company’s CEO, was recently at a White House dinner honoring Saudi Crown Prince Mohammed bin Salman.

The involvement of bin Salman was concerning to the lawmakers.

Lawmakers stated that the fund is controlled by Crown Prince Mohammed bin Salman, who, according to a U.S. intelligence report from 2021, ordered the killing of Jamal Khashoggi, a U.S. resident and journalist for The Washington Post.

I was really surprised to hear Trump comment on the potential Netflix deal over the weekend. He seemed concerned it could give them too much power in the streaming world, saying it ‘could be a problem.’ It definitely made me think about how dominant Netflix already is!

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2025-12-10 22:01