Hollywood
Paramount keeps CNN sale on table amid California merger lawsuit
Legal chief also signals company could leave California over Warner Bros deal
NEW YORK: Paramount Skydance is keeping all options open, including a potential sale of CNN, as it seeks to resolve California’s antitrust challenge to its proposed $110 billion acquisition of Warner Bros Discovery.
The company’s chief legal officer Makan Delrahim said Paramount was considering a range of options to address the lawsuit, while also acknowledging that the company could potentially leave California if the regulatory dispute makes remaining in the state untenable.
Delrahim made the comments at Politico’s California Agenda conference on Tuesday. He is the first Paramount executive to publicly acknowledge the possibility of the company relocating from California, following recent reports that it could consider a move.
According to a Reuters report, Delrahim said Paramount could reach a point where it has a “fiduciary duty to its shareholders” that would factor into any decision about its future in California.
The comments come as the California-led litigation remains the final major regulatory hurdle for the Warner Bros Discovery transaction. The UK recently cleared the takeover after securing five-year guarantees covering programming and editorial independence for Channel 5 news from CNN International and CBS News.
The deal has also received clearance from US federal regulators, China and other jurisdictions.
California Attorney General Rob Bonta and 11 other state attorneys general are seeking to block the merger, arguing that the transaction would create a media giant capable of raising prices and reducing competition across the film and television markets.
The states have also rejected Paramount’s pledge to release 30 films a year, arguing that the commitment is not enforceable. They maintain that the combined company could still raise prices and reduce quality even if it honours the pledge.
The legal battle puts Paramount’s proposed acquisition under pressure even after several other regulatory hurdles have been cleared.
The dispute also has wider implications for California, given Paramount’s deep links to Hollywood and the state’s entertainment economy.
During the conference, Delrahim referred to Xavier Becerra, the former US health secretary and likely future California governor candidate, saying he would not want Hollywood or a major company such as Paramount to leave the state.
For Paramount, however, the merger remains the bigger prize. Keeping a potential CNN sale and even a California exit on the table suggests the company is weighing multiple ways to get the $110 billion Warner Bros Discovery deal across the regulatory finish line.
The next phase of the antitrust fight could determine whether those options remain negotiating tactics or become part of Paramount’s eventual deal strategy.
