The congressman who represents the district where Netflix is located, and who grew up just miles away, has slammed Paramount Skydance’s hostile bid for Warner Bros. Discovery (which Netflix wants to acquire), citing national security risks.
District 16 Representative Sam Liccardo, who grew up in Saratoga and has previously lived in Los Gatos, sent a letter—co-signed by Congresswoman Ayanna Pressley—to WBD’s president and CEO David Zaslav, expressing his concern.
“This transaction raises national security concerns because it could transfer substantial influence over one of the largest American media companies to foreign-backed financiers,” they wrote, demanding—if the Paramount Skydance bid proceeds—that WBD immediately file a notice with the Committee on Foreign Investment in the United States.
“These investors include Emirati and Qatari funds, as well as Affinity Partners, a private equity fund founded by Jared Kushner and backed by a $2 billion investment from the Saudi Public Investment Fund. The fund is controlled by Crown Prince Mohammed bin Salman, whom (according to the declassified 2021 report of the U.S. Director of National Intelligence) ordered the murder of U.S. resident and Washington Post journalist Jamal Khashoggi.”
Last Friday, Los Gatos company Netflix announced it was acquiring Warner Bros. for $82.7 billion. But on Monday, Paramount Skydance moved in with its own proposal for shareholders—a $30-per-share all-cash offer.
“These investors, by virtue of their financial position or contractual rights, could obtain influence—direct or indirect—over business decisions that bear upon editorial independence, content moderation, distribution priorities, or the stewardship of Americans’ private data,” their letter to Zaslav continues. “Even absent overt control, such influence can present a national-security threat when foreign state-linked entities have strategic interests inconsistent with those of the United States.”
They requested a formal response by Dec. 22.
“The American public relies on Warner’s platforms for news, entertainment, and vital information,” they wrote. “Allowing foreign-backed investors to obtain influence over this ecosystem without the fullest possible scrutiny would be irresponsible and dangerous. As stewards of one of the nation’s most important media institutions, the Board of Directors has a responsibility to ensure that any potential transaction protects both national security and the long-term interests of Warner Bros. Discovery’s shareholders.”
Importantly, the Paramount Skydance hostile bid would include CNN, while the Netflix deal would not.
