Sale Of CNN 'On the Table'

A sale of CNN is “on the table” as Paramount Skydance seeks to complete its $110 billion acquisition of Warner Bros. Discovery and resolve a lingering multistate antitrust lawsuit, the company’s chief legal officer said.

Makan Delrahim made the comments at Politico’s California Agenda conference, noting a potential deal for the news network could help end the suit if it addresses regulators’ concerns. California Attorney General Rob Bonta and 11 other states argue that the combined “media behemoth” risks higher prices and reduced competition for movies and cable television.

The lawsuit is the final major obstacle after Paramount Skydance secured clearances from U.S. federal regulators, the United Kingdom, the European Union, China and other jurisdictions. By putting CNN on the auction block, the company aims to make the merger appear less monopolistic. Paramount Skydance already combines Skydance and Paramount assets, including production studios and CBS News; adding Warner Bros. Discovery would bring in HBO, DC Studios, TNT and other properties.

Makan Delrahim

Delrahim also became the first Paramount Skydance official to publicly state the company may leave California, following earlier reports linked to CEO David Ellison. “There is a point at which where you have a duty, a fiduciary duty to your shareholders, and those are the factors you consider,” he said. “If I was governor, I wouldn’t want to lose Hollywood from the state. I wouldn’t want to lose a major company like Paramount to another state. It isn’t a blackmail attempt. You go where you’re wanted.”

Reports indicate possible relocation to Tennessee, Texas or Georgia. A $7 million-per-day ticking fee takes effect if the Warner Bros. Discovery deal is not completed by Oct. 1. Leaving California could save an additional $500 million annually in taxes plus billions from selling studio lots. California Gov. Gavin Newsom has expressed concern about the antitrust case and is encouraging Bonta’s office to pursue an out-of-court settlement.