A Paramount executive blamed some opposition to the Warner Bros. Discovery merger on antisemitism amid scrutiny of its Middle Eastern financing

The proposed $111 billion merger between Paramount and Warner Bros. Discovery has cleared a major hurdle after receiving approval from the Justice Department’s Antitrust Division on June 12, 2026, but continues to face scrutiny from European regulators over its Middle Eastern financial backing. Paramount Chief Legal Officer Makan Delrahim has pushed back against critics, claiming that some of the opposition is rooted in antisemitism.

Delrahim made the claim during an interview this month, suggesting that pushback from Washington, D.C. is politically motivated. According to the Los Angeles Times, he stated, “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 also argued that the merger would benefit the industry by creating more and better jobs, and noted that the leadership team includes a filmmaker who appreciates the creative side of the business. The deal, if completed, would bring CNN under the same roof as Paramount’s major studios, significantly reshaping the American entertainment landscape.

Middle Eastern sovereign wealth funds hold combined equity stakes of over 38 percent in the deal’s financing structure

A central point of concern for regulators is the financial structure underpinning the transaction, reports Mediaite. According to a Paramount filing, a significant portion of the deal’s $79 billion in associated debt is tied to sovereign wealth funds from the Middle East. Saudi Arabia’s Public Investment Fund is set to hold a 15.1 percent equity stake, the United Arab Emirates’ fund would hold 12.8 percent, and the Qatar Investment Authority would hold 10.6 percent.

European Union regulators confirmed on June 11, 2026, that they are examining the takeover specifically because of this Middle Eastern financial backing. The European Commission was expected to decide by June 14, 2026, whether to approve the merger or open a more comprehensive investigation. The deal also still requires regulatory approval in the United Kingdom.

Despite the concerns, Delrahim expressed confidence in the ownership structure and dismissed worries about the company’s financial stability, calling such concerns “silliness.” He pointed out that the leadership team consists of owner-operators who maintain over 50 percent ownership, giving them a direct personal stake in the company’s performance. 

The Justice Department has also been making headlines in other areas, with Trump’s DOJ reportedly exploring a deal to end IRS audits of Trump and his family. Delrahim maintained that the merger would ultimately be a positive development for the entertainment industry, and expressed confidence that regulators and law enforcement officials would see through what he described as politically motivated opposition. 

He has not elaborated further on which individuals or groups he was referring to with his antisemitism claims. The Justice Department’s antitrust clearance marked a significant step forward for the deal.

But the outcome of the European Commission’s review and the United Kingdom’s regulatory process will determine whether the merger can move ahead on the international stage. Separately, a DOJ attorney recently argued courts lack power to halt the White House ballroom project even if found illegal, citing national security interests.