Paramount is keeping all options, including a potential sale of CNN, "on the table" as it seeks to resolve an antitrust lawsuit filed by California that challenges its $110 billion acquisition of Warner Bros. Discovery. The company's chief legal officer, Makan Delrahim, also acknowledged that Paramount might relocate from California, a possibility stemming from the ongoing legal dispute.
Delrahim, speaking at Politico's California Agenda conference, indicated that the company has a fiduciary duty to its shareholders, which guides its decision-making regarding its presence in the state. He suggested that any governor would want to retain a major company like Paramount and expressed concern about losing Hollywood from California.
Legal Obstacles to Merger
The California-led litigation remains the most significant regulatory hurdle for the merger, following approvals from U.S. federal regulators, China, and other jurisdictions. Britain recently cleared the takeover, requiring Paramount to provide five-year guarantees on programming and editorial independence for Channel 5 news from CNN International and CBS News.
However, California Attorney General Rob Bonta, joined by 11 other state attorneys general, is seeking to block the merger. They argue that the combination would create a "media behemoth" with the power to increase prices and reduce competition in the film and television markets. The states have dismissed Paramount's commitment to release 30 films annually as unenforceable, contending that the company could still raise prices and lower quality post-merger even if it adheres to this pledge.