Paramount Honcho Blames Opposition to WBD-CNN Mega-Merger on Antisemitism Amid Deal Scrutiny

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A key Paramount figure recently blamed opposition to the Warner Brothers Discovery mega-merger — which would include CNN — on antisemitism, even as the deal’s Qatari and Saudi financing is scrutinized by officials.

The debt-heavy $111 billion merger was approved by the Justice Department’s Antitrust Division on Friday, but still faces obstacles from other state and international regulatory bodies.

Paramount Chief Legal Officer and former Trump Justice Department official Makan Delrahim said, in an LA Times interview this month, that the deal is hampered by the “antisemitic viiews” of some of its critics:

Many people in Hollywood view the merger with trepidation because of the prospect of more job losses. Others see it through a political lens. How do you evaluate the politics?

Politics is part of life. It’s part of the beautiful process of democracy. Generally, we are very empathetic to the folks in Hollywood, but this transaction will actually create more and better and exciting jobs. David is an absolute lover of films; he’s a filmmaker himself. For the first time, you are getting an owner who comes from the creative side.

Let’s be honest. There’s a lot of fear-mongering, particularly from people in Washington, D.C. They are running a political campaign. Some of these people are trying to inflict harm on this transaction really because of their own antisemitic views. Regulators and law enforcement officials will see right through that.

Delrahim did not elaborate, but he did go on to dismiss concerns about the debt that goes along with the deal:

Do regulators share others’ concerns about the merger debt — $79 billion — for the combined company?

Some regulators appropriately have asked about it. They say: ‘This is what we have heard, that you guys are not going to be around because of this debt,’ which is just silliness. David and his family are owner-operators. They’re not rented CEOs. They have over 50% ownership. They put their money at stake and my money is on them.

Much of that debt — almost forty percent — will be held by Saudi, Qatari, and UAE wealth funds, according to a Paramount filing reported by Variety:

Paramount said Saudi Arabia’s Public Investment Fund will have a 15.1% equity stake; the United Arab Emirates’ sovereign wealth fund will own 12.8% equity; and the Qatar Investment Authority will own 10.6% equity. Paramount has previously said foreign investors backing its WBD takeover will not have board seats or voting shares.

That debt is the subject of a probe by European Union regulators that came to light this week:

European Union regulators are studying Paramount Skydance’s prospective takeover of Warner Bros. Discovery over the deal’s financial backing from three Middle Eastern sovereign wealth funds, according to a public filing.

The inquiry, publicly confirmed Wednesday, deepens the scrutiny of a corporate tie-up that would unite two historic Hollywood studios under the same roof and reshape the American entertainment industry.

Paramount, which agreed to buy Warner in February for $110 billion, requested E.U. approval of the deal under the bloc’s foreign subsidies regulation. The European Commission, the E.U.’s competition enforcement arm, said it will decide by Sunday whether to sign off on the merger or open a full investigation.

The deal will also need the approval of regulators from the United Kingdom.

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