Paramount Skydance Considers Selling CNN Amid Merger Regulatory Hurdles
Paramount Skydance Corporation (PSKY) is considering the potential sale of CNN to address regulatory concerns surrounding its proposed $81 billion acquisition of Warner Bros. Discovery (WBD). The merger, announced in February 2026, has cleared several international approvals but faces a major antitrust challenge from California and 11 other U.S. states. Paramount's Chief Legal Officer Makan Delrahim stated the company is exploring strategic options to resolve litigation blocking the deal. The potential CNN divestiture could help satisfy regulators' concerns about market concentration, improving chances of closing the merger. However, it would also mean relinquishing a key asset before finalizing the acquisition with WBD. Paramount has also escalated its legal battle by requesting 12 states post an $1.88 billion bond to cover potential losses from litigation delays. Investors are weighing whether selling CNN will strengthen or weaken the economics of the deal, as PSKY stock remains under pressure despite a recent rebound.
Topics: antitrust media stock_implications