The Digester

FCC Chair Brendan Carr said the Paramount Skydance purchase of Warner Bros. Discovery is less problematic than Netflix’s abandoned bid and that any FCC review of foreign financing will likely be pro forma, though DOJ, state and foreign regulators still must complete their reviews.

FCC Chair Brendan Carr told CNBC the Paramount Skydance takeover of Warner Bros. Discovery raises fewer regulatory concerns than Netflix’s failed bid.
Paramount Skydance is pursuing a roughly $111 billion purchase of WBD with major backing from the Ellison family and reported commitments from Gulf sovereign wealth funds.
Paramount must clear FCC foreign ownership rules because it already holds 28 local CBS broadcast licenses.
Carr said the foreign financing appears to qualify as bona fide debt and that any FCC review would likely be quick and procedural.
The Justice Department is reviewing the merger and Bloomberg reports it is unlikely to block the deal, but state and foreign regulators still must sign off.
Critics, including Sen. Elizabeth Warren, have raised corruption and fairness concerns tied to White House and administration contacts favoring Paramount.
If foreign investors acquire an attributable interest in the licensee under Section 310, a waiver or formal FCC approval would be required

FCC chair says Paramount’s $111 billion Warner Bros. Discovery deal is ‘‘a lot cleaner’’ than Netflix bid

Sources