Investing.com — Paramount Global (NASDAQ: PARA) shares rise following comments from Congressman John Moolener calling for a review of the company's merger with Skydance Media by the Committee on Foreign Investment in the United States (CFIUS) , down 1.5%. The lawmaker's concerns stem from Chinese involvement. Tencent Holdings Co., Ltd. (F:). was recently added to the US military's blacklist.
According to Bloomberg, Moolener, who chairs the House China Select Committee, on Wednesday expressed concern about China's potential to influence the U.S. entertainment industry through Tencent's Skydance stake. He called on CFIUS to scrutinize the merger, citing examples of self-censorship within Hollywood to appease the Chinese Communist Party.
In July, Paramount, which owns CBS, announced a merger agreement with film and television production company Skydance Media. The scrutiny comes at a time when the Pentagon has designated Tencent as a Chinese military company, raising red flags about the tech and entertainment giant's investments in the United States.
The CFIUS review request has cast a shadow over Paramount's stock price, indicating investor concern about potential regulatory hurdles the merger could face. Paramount and Skydance had not publicly responded to Moolenaar's comments as of press time.
The decline in Paramount's stock reflects the market's sensitivity to geopolitical tensions and regulatory challenges, especially when large amounts of foreign investment are involved. The outcome of the CFIUS review could impact the future of the merger and Paramount's strategic direction.
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