Hollywood auctioned off to Middle Eastern royalty as industry struggles to survive
A proposed $111 billion media merger between Paramount and Warner Bros, backed by $24 billion in funding from Saudi Arabia, the UAE, and Qatar, has sparked political and public backlash over foreign influence in American media. Paramount has requested a waiver from the FCC to allow 100% foreign ownership with limited voting rights, a move critics argue could cede control of U.S. media to authoritarian regimes. The deal faces scrutiny in both the U.S. and UK, with concerns over national security, media plurality, and potential job cuts in an already struggling Hollywood.
- ▪The merger involves $24 billion in equity from Gulf states and $54 billion in debt, with Paramount seeking an FCC waiver for full foreign ownership but restricted voting power.
- ▪California Democrat Sam Liccardo strongly opposed the deal, warning against surrendering American media to foreign authoritarian regimes.
- ▪Paramount claims Gulf investors would be passive with no voting rights or board seats, while control remains with the Ellison family and RedBird Capital.
- ▪The UK's Ofcom and Competition and Markets Authority are reviewing the deal due to foreign ownership rules and media plurality concerns.
- ▪Hollywood figures like Robert De Niro and Glenn Close, along with labor unions, have opposed the merger over foreign influence and planned $6 billion in cost cuts at Warner Bros.
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Metro Hollywood auctioned off to Middle Eastern royalty as industry struggles to survive By Daniel Farr Published May 1, 2026, 9:00 p.m. ET The request has triggered fierce backlash, led by California Democrat Sam Liccardo, who blasted both the proposal and regulators. A political firestorm is erupting over plans tied to a massive $111 billion media merger that could open the door for Gulf state investors to gain unprecedented influence over major Western media outlets. At the center of the controversy is a proposed takeover of Warner Bros by Paramount, a deal heavily backed by funding from Saudi Arabia, the United Arab Emirates and Qatar. Together, those nations are contributing $24 billion, making up the bulk of the equity financing, alongside $54 billion in new debt.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at US News – Latest Breaking Headlines, Photos & Videos | New York Post.
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