Paramount Skydance is considering the sale of CNN as a potential option to resolve an antitrust lawsuit filed by the state of California, according to the company's chief legal officer, Makan Delrahim. The lawsuit seeks to block Paramount's $110 billion acquisition of Warner Bros Discovery. Speaking at a conference on Tuesday, Delrahim stated that all options remain "on the table" to address the legal challenge.
The litigation, led by California Attorney General Rob Bonta and 11 other state attorneys general, is the final major regulatory hurdle for the merger. The deal has already received clearance from U.S. federal regulators, the United Kingdom, China, and other jurisdictions. In the UK, approval was granted after the company provided five-year guarantees regarding programming and editorial independence for certain news outlets.
California officials argue the merger would create a dominant media entity capable of increasing consumer prices and reducing competition in the film and television sectors. While Paramount pledged to release 30 films annually to address these concerns, state attorneys general dismissed the promise as unenforceable. They contend the company would still possess the market power to lower quality and raise costs for viewers.
The scale of the deal is substantial, involving a $110 billion valuation for Warner Bros Discovery. For the companies involved, the financial stakes include Paramount's fiduciary duty to its shareholders, which Delrahim cited as a factor in potentially relocating the company's headquarters out of California. Such a move would impact thousands of employees in the Los Angeles area and the broader California media industry, though a specific number of affected jobs was not reported.
For consumers, the primary concern cited by regulators is the potential for higher monthly bills for media services. The states argue that without competition, the merged "media behemoth" could increase prices for content without a corresponding increase in quality. A resolution to the lawsuit is required before the deal can be finalized, but the source did not provide a specific date for future court proceedings or a deadline for the CNN sale decision.
What happens next: The case remains in litigation as Paramount explores settlement options. The company's leadership has publicly acknowledged that leaving California is a possibility depending on the outcome and business requirements. No specific dates for the next court hearings or a final ruling were reported.