Concerns are raised by Saudi, Qatari, and Emirati funding of the Paramount-Warner Bros. deal

Two House Democrats warned on Wednesday that Paramount’s aggressive bid to acquire Warner Bros. is causing national security worries. They cited financial support from Middle Eastern sovereign wealth funds, which they believe might give foreign countries access or influence over U.S. data and content.

Three Middle Eastern sovereign wealth funds—the Public Investment Fund of Saudi Arabia, the Qatar Investment Authority, and the United Arab Emirates-based L’imad Holding Company of Abu Dhabi—have agreed to contribute a total of $24 billion to Paramount’s $108.4 billion deal.

Affinity Partners, a private equity firm founded by President Donald Trump‘s son-in-law Jared Kushner, is also supporting the bid. The firm received $2 billion in funding from the Public Investment Fund in 2021. Collaborated with the fund to acquire video game giant Electronic Arts in a $55 billion deal earlier this year.

Any agreement that grants «governance rights, access to non-public data, or indirect influence over content distribution» could be abused by foreign countries. Two Democratic members of the House Financial Services Committee cautioned in a letter sent on Wednesday.

However, according to paperwork Paramount filed with the Securities and Exchange Commission, the three sovereign wealth funds and Affinity Partners. Agreed to give up governance rights, including board seats, if the purchase goes through.

Democratic representatives suggested that a future Democratic-controlled Congress could take action even if a deal goes through. “Furthermore, future Congresses will review many of the current administration’s decisions and may recommend that regulators push for divestitures. Which would undermine the strategic rationale for this merger,” Liccardo and Pressley wrote in Wednesday’s letter. “The American public relies on Warner’s platforms for news, entertainment, and vital information. Allowing foreign-backed investors to gain influence over this ecosystem without the utmost scrutiny would be irresponsible and dangerous,” the two representatives added.