Paramount Reveals Company Will Be 49.5% Owned By Foreign Investors If Warner Bros Merger Approved

from the America-Last dept

FCC boss Brendan Carr has spent much of the last five years on cable TV whining incessantly about foreign entanglement with U.S. companies. Even companies he doesn’t regulate.

He was positively apoplectic about China’s ownership of TikTok, which you may recall they “fixed” by offloading the social media company to Trump’s billionaire friends (while curiously maintaining Chinese co-ownership). He’s also been endlessly whiny about Chinese entanglement in U.S. hardware, recently imposing a “ban” on foreign routers (which is actually more of a lazy extortion scheme).

But when it comes to a Trump-allied right wing billionaire buying up the entirety of U.S. media companies with Chinese and Middle East autocratic help, Brendan Carr is suddenly nowhere to be found.

A new filing from Paramount related to its $111 billion acquisition of Warner Brothers reveals the finalized deal will result in a company that’s 49.5% owned by foreign interests (including the Chinese), and 38.5% owned by a a trio of Middle Eastern funds, including the journalist-butchering folks over in Saudi Arabia:

“In a petition for declaratory ruling to the FCC signed by Paramount legal chief Makan Delrahim, Paramount asks the Brendan Carr-led commission to sign off on the deal involving Saudi Arabia’s PIF (public investment fund), L’Imad, an Abu Dhabi sovereign wealth fund, and a Qatar Investment Authority fund.”

If you’re playing along at home, that’s the same Makan Delrahim who used to be Trump’s DOJ “antitrust enforcer” during his first term. Delrahim “enforced antitrust” at the time by helping Sprint and T-Mobile gain rubber-stamp approval for their job and competition eroding merger. He even used his personal phones and computers to give the companies advise on how to bypass regulatory scrutiny.

Normally the FCC wouldn’t have any say in this deal because no local broadcast stations or public airwaves are directly involved, but it does have some say in how the deal is financed. The Communications Act of 1934 restricts foreign entities from holding more than a 25% indirect equity or voting interest in a U.S. company that holds broadcast licenses. Obviously, 49.5% bypasses that.

Paramount and Brendan Carr have already insisted this is all irrelevant and Carr has openly signaled to a top GOP donor (Larry Ellison) that he won’t object to any part of the foreign financing. Paramount’s filing continues to insist the deal (and its massive debt) will be great for consumers, creatives, and everybody in between. From a Paramount statement:

“When the transaction and equity syndication close, the Ellison family and RedBird will collectively hold the largest equity stake in the combined company and continue to be the sole owners of Class A Common Stock, representing 100% of the voting shares, with no other equity syndication party having any governance rights, voting shares, or Board representation. The combination of Paramount and WBD’s complementary assets will enhance competition while creating a strong champion for creative talent and consumer choice.”

There is, as we’ve explored, nothing that supports this last claim. That massive level of debt will inevitably result in mass layoffs, corner cutting, and price hikes. This is what always happens. And this is before a potential AI bubble pop impacts the Ellison family financials even more. There’s a very good chance this deal implodes in a giant fireball regardless of who is financing it.

Still, it’s curious that a GOP that spends so much of its time engaged in xenophobic and racist tirades about foreign investment in U.S. free market innovation goes so quickly silent when they stand to personally benefit. In this case both financially via Larry Ellison’s patronage, and ideologically via Larry Ellison’s conversion of CNN, TikTok, and CBS into (global) autocrat-friendly propaganda machines.

Filed Under: brendan carr, consolidation, fcc, foreign ownership, larry ellison, media, mergers, propaganda

Companies: paramount, warner bros. discovery