Investing.com — Shares of Paramount Global (NASDAQ: PARA ) fell 1.5% following comments from Congressman John Moolenaar, who called for a Committee on Foreign Investment in the United States (CFIUS) review of the company’s merger with Skydance Media. Lawmakers’ concerns stem from China’s involvement Tencent Holdings Ltd (F:)., a recent addition to the US Army blacklist, in agreement.
According to Bloomberg, Moolenaar, who chairs the House Select Committee on China, expressed concern on Wednesday about potential Chinese influence on the US entertainment industry through Tencent’s stake in Skydance. He cited examples of self-censorship within Hollywood to appease the Chinese Communist Party and urged CFIUS to scrutinize the merger.
Paramount, which owns CBS, announced a deal in July to merge with film and TV producer Skydance Media. The scrutiny comes as the US Department of Defense designated Tencent as a Chinese military company, raising a red flag for the tech and entertainment giant’s investment in the US
The call for a CFIUS review cast a shadow over Paramount’s stock, signaling investors’ fears about potential regulatory hurdles the merger could face. Paramount and Skydance had not publicly responded to Moolenaar’s statement at the time of reporting.
The drop in Paramount shares reflects the market’s sensitivity to geopolitical tensions and regulatory challenges, particularly when they involve significant foreign investment. The outcome of any CFIUS review could have implications for the future of the merger and Paramount’s strategic direction.
This article was generated with the help of AI and reviewed by an editor. See our T&C for more information.
