Paramount and Skydance explore CNN sale as states sue to block WBD merger

Paramount Global’s chief legal officer has indicated that the company could consider divesting CNN as a possible remedy in response to a lawsuit filed by a coalition of twelve states, led by California, seeking to block its proposed merger with Warner Bros. Discovery (WBD). The states allege that the transaction would substantially lessen competition in the media and entertainment markets, potentially harming consumers and advertisers. The lawsuit, lodged in federal court, challenges the companies’ plan to combine Paramount’s film, television and streaming assets with WBD’s extensive content library and distribution platforms.

The hint of a CNN sale emerges as the parties explore ways to address the antitrust concerns raised by regulators and the state plaintiffs. While Paramount has not confirmed any definitive divestiture, the suggestion underscores the pressure on the merger’s proponents to offer concessions that could satisfy competition authorities. The outcome of the legal challenge will determine whether the merger proceeds as announced or whether significant asset separations, such as a possible CNN disposition, become necessary.