Paramount Eyes CNN Sale Amid California Suit Over Warner Bros Deal
Paramount's Strategic Moves and Legal Challenges
Aug 12 (Reuters) - Paramount Skydance is keeping all options, including a possible sale of CNN, "on the table" to resolve California's antitrust suit challenging its $110 billion acquisition of Warner Bros Discovery, the company's chief legal officer said.
Speaking at Politico's California Agenda conference on Tuesday, Makan Delrahim also became the first Paramount executive to publicly acknowledge the Los Angeles-based company may leave California, after recent media reports cited unnamed sources about a potential relocation.
Key Developments and Statements
Here are some more details:
Potential Relocation and Shareholder Considerations
• Asked whether Paramount might quit the state, Delrahim said there is "a point at which where you have a duty, a fiduciary duty to your shareholders, and those are the factors you consider."
Political Reactions and Industry Impact
• Referring to California's likely next governor, former U.S. health secretary Xavier Becerra, he said, "If I was governor, I wouldn't want to lose Hollywood from the state. I wouldn't want to lose a major company like Paramount to another state."
Regulatory Approvals and Remaining Obstacles
UK Approval and Guarantees
• The exchange came days after Britain cleared the takeover, extracting five-year guarantees on programming and editorial independence for Channel 5 news from CNN International and CBS News.
California Litigation as Final Hurdle
• That UK approval left the California-led litigation as the deal's last major regulatory obstacle, following clearances from U.S. federal regulators, China and other jurisdictions.
Arguments from California and Other States
• California Attorney General Rob Bonta and 11 other state attorneys general are seeking to block the merger, arguing it would create a "media behemoth" able to raise prices and reduce competition in film and television markets.
• The states have dismissed Paramount's pledge to release 30 films a year as unenforceable and said the company would still be in a position to raise prices and decrease quality after the merger even if it stuck to that promise.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Leroy Leo)