- Paramount Skydance may sell CNN to resolve California's antitrust lawsuit on its Warner Bros deal
- Paramount's legal chief said all options, including CNN sale, are under consideration to address opposition
- California and 11 states argue the acquisition would create excessive market power and reduce competition
Paramount Skydance is considering selling CNN as it looks for ways to resolve California's antitrust lawsuit challenging its proposed $110 billion acquisition of Warner Bros. Discovery.
Paramount Chief Legal Officer Makan Delrahim said the company is keeping all options, including a possible CNN sale, “on the table” as it attempts to overcome opposition from California and 11 other states.
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The comments came at Politico's California Agenda conference and mark the first public indication from a Paramount executive that CNN could be sold as part of efforts to address the regulatory concerns surrounding the deal.
The California-led lawsuit argues that the proposed acquisition would create a “media behemoth” with excessive power over film and television markets. The states have said the combined company could increase prices and reduce competition.
Paramount has sought to address those concerns, including through a pledge to release 30 films annually. However, the states have dismissed that commitment as unenforceable and argued that it would not prevent the merged company from raising prices or reducing quality.
California's lawsuit remains a major regulatory obstacle for the deal after the transaction received approval from US federal regulators, China and other jurisdictions.
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The UK approved the takeover last week after securing five-year guarantees related to programming and editorial independence for Channel 5 news from CNN International and CBS News.
The regulatory fight could also have wider consequences for Paramount's presence in California. Delrahim acknowledged that relocating the company's headquarters was an option, although he said Paramount would prefer to remain in the state. He added that the company's responsibility to shareholders would be a factor in any such decision.
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