Paramount Skydance would consider selling CNN to end an antitrust lawsuit that’s seeking to thwart the media giant’s $111-billion takeover of Warner Bros. Discovery, according to reports. Wednesday, Reuters reported Paramount Chief Legal Officer Makan Delrahim told journalists at Politico’s California Agenda conference that everything was on the table, including the sale of CNN, which is owned by Warner, to resolve the California-led antitrust lawsuit.
In a New York Times op-ed, Paramount CEO David Ellison tied the antitrust lawsuit to concerns over editorial independence at CNN on the part of 12 state attorneys general who sued. Whether a promise to sell CNN would end the lawsuit isn’t absolute. California Attorney General Rob Bonta, who is leading the antitrust case, has scoffed at Ellison tethering the lawsuit to CNN’s status, and said that the case is about stopping a media behemoth that will raise prices and undermine competition.
Paramount’s Proposal and Potential Consequences
Ellison has also threatened to move Paramount out of California starting in October if Bonta doesn’t progress toward settling the lawsuit. At the conference, Bonta called that threat “blackmail,” Deadline reported. Delrahim addressed Ellison’s proposal to take the company out of Hollywood, saying “There’s a point at which you have a duty, a fiduciary duty to your shareholders, and those are all the factors you consider. But our goal is to be here.”
Paramount began a push to buy Warner in December, with Ellison positioning his company as a better fit than Netflix, which had been the forerunner in the purchase. In February, Paramount’s bid won out, but antitrust regulations meant the deal couldn’t be finalized before 12 states sued to stop the merger. A trial date is set for March, and until it’s complete, the merger won’t happen without a settlement from the attorneys general.
In conclusion, the potential sale of CNN and the ongoing antitrust lawsuit have significant implications for the future of Paramount and Warner Bros. Discovery. The outcome of the trial and any potential settlements will be closely watched by the entertainment industry, as it could have far-reaching consequences for the media landscape. With Paramount and Warner Bros. Discovery at the center of the controversy, the situation remains uncertain, and the future of these media giants hangs in the balance.
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