Media giant keeps restructuring options open while warning it could reconsider California presence amid continuing antitrust litigation
LOS ANGELES: Paramount Skydance is considering all options, including a potential sale of CNN, as it seeks to resolve California’s antitrust lawsuit challenging its $110 billion acquisition of Warner Bros Discovery, the company’s chief legal officer said.
Speaking at Politico’s California Agenda conference, Makan Delrahim said Tuesday that a CNN sale remained “on the table” as Paramount examines possible solutions to overcome the merger’s remaining regulatory obstacle.
Furthermore, Delrahim publicly acknowledged for the first time that Paramount could consider leaving California, following reports that the entertainment company was evaluating a potential relocation.
California Lawsuit Remains Major Regulatory Hurdle
Delrahim said companies must eventually consider their fiduciary responsibilities to shareholders when assessing their operating environment.
Referring to California’s political leadership, he argued that state officials should consider the consequences of potentially losing a major Hollywood company.
Meanwhile, Britain recently approved Paramount’s Warner Bros Discovery takeover after securing five-year commitments covering programming and editorial independence for Channel 5 news involving CNN International and CBS News.
Consequently, the California-led legal challenge remains the transaction’s last major regulatory obstacle after Paramount secured approvals from US federal regulators, China and other jurisdictions.
States Warn Merger Could Reduce Competition
California Attorney General Rob Bonta and attorneys general from 11 other states are seeking to block the acquisition.
They argue that combining Paramount and Warner Bros Discovery would create a powerful media conglomerate capable of raising consumer prices while weakening competition across television and film markets.
Moreover, the states have rejected Paramount’s pledge to release 30 films annually, describing the commitment as unenforceable.
The attorneys general contend that the combined company could still increase prices or reduce quality even while maintaining its promised production levels.
Paramount, however, continues exploring potential remedies as it works to complete one of the entertainment industry’s largest-ever consolidation deals.
