Paramount considering CNN sale as part of efforts to settle lawsuit regarding Warner Bros deal

August 12, 2026

Paramount Skydance Inc. Considers Options Amid Legal Challenges

Paramount Skydance Inc. is exploring various avenues, including the potential sale of CNN, to address a California antitrust lawsuit linked to its $110 billion acquisition of Warner Bros. Discovery, according to the company’s chief legal officer.

During a discussion at Politico’s California Agenda Conference on Tuesday, Makan Delrahim publicly noted that Paramount might consider relocating from California, following recent media reports that suggested this possibility based on anonymous sources.

Here are the key points:

When questioned about the possibility of Paramount leaving the state, Delrahim mentioned, “There’s a stage where you have a duty or a fiduciary responsibility to your shareholders, and that’s a factor that you consider.”
He further expressed concern, saying, “If I were governor, I wouldn’t want to lose Hollywood from the state. I wouldn’t want to lose a big company like Paramount to another state,” referencing former U.S. Secretary of Health, Xavier Becerra, who may take on the role of California’s next governor.
This commentary comes just days after British regulators approved the merger but with stipulations requiring CNN International and CBS News to maintain the programming and editorial independence of Channel 5 News for five years.

The approval from Britain, along with clearances from U.S. federal regulators, China, and other jurisdictions, effectively clears the last major regulatory hurdle for this deal amid the California-led lawsuit.
California Attorney General Rob Bonta, along with 11 other state attorneys general, is attempting to halt the merger, asserting that it would create a “media giant” capable of raising prices and diminishing competition in the film and television sector.

The states have dismissed Paramount’s commitment to produce 30 films annually as unenforceable, arguing that even if the company adhered to this promise, it would still be positioned to raise prices and compromise quality post-merger.

This is an evolving situation. Stay tuned for updates.