Paramount Considers Selling CNN or Leaving California Amid Aggressive Push for Warner Merger

Paramount Skydance is advancing a roughly $110 billion acquisition of Warner Bros. Discovery but currently faces antitrust litigation led by the California state government. Makan Delrahim, Paramount’s Chief Legal Officer, stated the company is evaluating various options—including the potential sale of CNN—to overcome regulatory hurdles posed by the lawsuit.

Delrahim made the remarks on August 11 during Politico’s “California Agenda” conference, emphasizing that no option is off the table to ensure the completion of the $110 billion deal. His openness to selling CNN signals a willingness to divest key assets if regulators deem the merged entity too dominant in the media landscape.

This marks the first time a Paramount executive has publicly acknowledged the possibility of relocating the company’s operations out of California. While anonymous sources recently reported that Paramount was considering such a move, senior leadership had not previously confirmed it. When asked whether Paramount might leave California, Delrahim did not deny it outright, instead citing the board’s fiduciary duty to shareholders: “At some point, you have a fiduciary responsibility to your shareholders,” he said, implying that relocation remains a viable contingency.

Delrahim also commented on California’s political direction, referencing former U.S. Health and Human Services Secretary Xavier Becerra. He noted that if he were governor, he wouldn’t want the entertainment industry—or a major corporation like Paramount—to leave the state. This suggests that the merger’s regulatory fate is now intertwined with Paramount’s long-term operational footprint in California.

Beyond relocation, Paramount is exploring other measures to alleviate California’s antitrust concerns. By not ruling out the sale of CNN, the company is signaling its readiness to reduce market concentration through asset divestitures if required.

The deal has already been approved by several jurisdictions, including the United Kingdom, which imposed conditions requiring editorial independence for Channel 5 news programs linked to CNN International and CBS News for a period of five years. With UK approval secured, California’s lawsuit now stands as one of the most significant remaining regulatory obstacles. The transaction has also received clearance from U.S. federal regulators, China, and other international jurisdictions.

California Attorney General Rob Bonta, joined by 11 other state attorneys general, is seeking to block the merger. They argue that a combined Paramount-Warner entity would create a “media behemoth” capable of further weakening competition in the film and television markets.

Core concerns include the merged company gaining excessive bargaining power, potentially leading to higher consumer prices and fewer competitors. Regulators also fear that the combined entity could exert disproportionate control over content distribution, limiting choices for consumers and other industry players. They do not believe Paramount’s commitment to produce 30 films annually is sufficient to address antitrust risks.

The states involved in the lawsuit argue that the production pledge lacks strong legal enforceability and offers no guarantee that Paramount will uphold it post-merger. Even if the company meets its output target, it could still raise prices or lower content quality—meaning volume alone cannot resolve competition issues.

The $110 billion transaction represents a massive consolidation in the entertainment industry, integrating film, television, streaming, and news media. If completed, it would merge Paramount’s existing portfolio with Warner Bros. Discovery’s vast content library and media assets. CNN, in particular, has emerged as a focal point in antitrust reviews due to its influence and reach.

With executives now openly discussing the sale of CNN, Paramount appears to be adopting a strategy of preemptive concession—offering asset sales to increase the likelihood of final approval. At the same time, Delrahim’s comments about potentially leaving California elevate the stakes beyond a simple corporate merger, implicating the future of Hollywood and California’s broader entertainment economy.