Paramount Skydance is considering selling CNN as it seeks to address an antitrust lawsuit brought by California and 11 other states against its proposed $110bn merger with Warner Bros. Discovery.
The company’s chief legal officer, Makan Delrahim, said at Politico’s Agenda California conference on Tuesday that a potential CNN sale was “on the table”. He said Paramount Skydance had been transparent and was willing to work with both Republicans and Democrats to advance the merger.
What Paramount is considering
The possible sale comes as Ellison faces scrutiny over promises to preserve CNN’s editorial independence if the merger is completed. In a New York Times opinion article last week, Ellison said the network’s journalism would remain independent.
Those assurances have drawn comparisons with commitments made before Paramount Skydance took control of CBS News nearly a year ago, according to CNN media analyst Brian Stelter. CBS later appointed Bari Weiss to lead its news operation and Kenneth Weinstein as an ombudsman to investigate allegations of bias.
Related coverage: Paramount agrees to halt Warner Bros acquisition pending court decision.
Why the states are challenging the merger
The lawsuit is focused on the broader effects of combining the studios, not specifically on CNN. It alleges that the merger would reduce consumer choice and professional opportunities for people who make television and movies.
California Attorney General Rob Bonta has warned that the combined company would control 27 percent of theatrically released films in the United States, as well as basic cable distribution.
What happens next
Delrahim also confirmed reports that Paramount was considering relocating operations while the lawsuit continues. He suggested the prospect of leaving California could matter politically, saying he would not want to lose Hollywood or a major company from the state if he were governor.
More context: Court Orders Temporary Pause on Paramount-Warner Bros Merger Over Competition Concerns.
The Writers Guild of America criticised what it described as threats to leave California, arguing that the company’s size and influence were reasons the merger should be blocked. Seth Stern of the Freedom of the Press Foundation said a CNN sale would not resolve the states’ antitrust case or separate free-speech concerns.
Paramount Skydance shares were up 1.1 percent in midday trading, while Warner Bros. Discovery shares were up 1.4 percent.
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