Paramount Considers Selling CNN to Clear Path for Warner Bros. Merger Amid Antitrust Suits

Paramount is exploring the sale of CNN as a potential strategy to resolve antitrust lawsuits filed by U.S. states, which are currently blocking its proposed merger with Warner Bros. The media giant is considering all options to navigate the legal challenges, according to its chief legal officer, Makhan Delrahim.

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We are considering all options, including the sale of CNN.

Twelve U.S. states have filed lawsuits to prevent the merger, arguing that the creation of a combined media behemoth would stifle competition in the film and TV markets and lead to increased prices for consumers. While federal and international authorities have approved the deal, these state-level lawsuits represent the final major hurdle.

Paramount previously proposed offering concessions, such as committing to releasing 40 films annually, but these were rejected by the states as non-binding promises. The potential sale of CNN, a prominent news channel under Warner Bros., could serve as a significant move to reduce the merged entity's market dominance and appease regulators.

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If the time comes when we have to fulfill our fiduciary duty to shareholders, we will consider moving the headquarters elsewhere.

Furthermore, Paramount has publicly hinted at relocating its headquarters from California, a state leading the opposition. Delrahim stated that the company would consider moving if its fiduciary duty to shareholders demanded it, a direct warning to California officials. This marks the first time a senior Paramount executive has openly discussed the possibility of leaving California.

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If I were the governor of California, I would not want major companies like Paramount to move to other states.