Kathmandu— Paramount Skydance is exploring the potential sale of CNN in an effort to address antitrust concerns surrounding its planned $110 billion merger with Warner Bros. Discovery, according to comments made by Paramount’s chief legal officer, Makan Delrahim. Twelve states, led by California, have filed a lawsuit seeking to block the merger, arguing it would reduce competition in the entertainment industry. Delrahim indicated a CNN sale was “on the table” as a possible solution while also suggesting that relocating operations out of California could occur if the state doesn’t approve the deal, raising questions about political pressure and editorial independence.

Antitrust Challenge and Potential Sale

California Attorney General Rob Bonta and attorneys general from eleven other states have filed a lawsuit to block the merger between Paramount Skydance and Warner Bros. Discovery, citing concerns that the combined entity would control 27 percent of theatrically released films in the US market and a significant portion of basic cable distribution. Makan Delrahim confirmed reports that Paramount was considering selling CNN as one way to address these antitrust issues, stating the company is willing to work with both Republicans and Democrats to move the merger forward.

Editorial Independence Concerns

The potential sale of CNN comes amid scrutiny regarding assurances made by Ellison about preserving the network’s editorial independence. Critics point to Paramount Skydance's previous acquisition of CBS News, where similar promises were followed by the hiring of right-leaning commentators like Bari Weiss and a perceived shift in editorial direction. Brian Stelter, a CNN media analyst, noted that these past events cast doubt on current assurances.

Political Pressure and State Concerns

Delrahim suggested that California could lose Hollywood businesses if it blocks the merger, appearing to apply political pressure ahead of the state’s gubernatorial election. The Writers Guild of America criticized Paramount’s threat to leave California, arguing it demonstrates the company's outsized power and reinforces the need to block the merger. Seth Stern, director of advocacy for the Freedom of the Press Foundation, clarified that selling CNN would not resolve the core antitrust concerns or broader censorship issues raised by free speech advocates.

Lawsuit Focuses on Market Control

The lawsuit filed by California and eleven other states centers on the potential consolidation of market power within the entertainment industry. The attorneys general argue that fewer options for consumers and reduced opportunities for creative professionals would result from the merger, extending beyond concerns about CNN’s editorial direction.

As of midday trading, Paramount Skydance stock rose 1.1 percent while Warner Bros. Discovery stock increased by 1.4 percent, suggesting investor confidence despite ongoing legal challenges.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.