California Weighs CNN Divestiture as Paramount-Warner Merger Faces Antitrust Review

According to Variety, which first reported the development, Bonta has raised the possibility that requiring Paramount to sell CNN could become part of California’s effort to address competition concerns tied to the transaction. Variety‘s report by Todd Spangler said the attorney general views structural remedies—including divestitures—as a more effective means of preserving competition than behavioral commitments alone.

The proposed acquisition, valued at approximately $111 billion, would combine Paramount’s film, television and streaming businesses with Warner Bros. Discovery’s portfolio, including HBO, Warner Bros. Pictures, CNN and other major media assets. The transaction has attracted heightened regulatory attention because of its potential effects on competition across television, film production, streaming distribution and news media.

Reuters previously reported that Bonta has been evaluating whether California should seek to block the merger under state antitrust law, citing concerns raised by theater owners, labor groups and other industry participants who argue that additional consolidation could reduce competition, eliminate jobs and narrow choices for consumers and content buyers. The attorney general has also indicated that structural remedies are generally more durable than company promises about future business practices.

The possibility of requiring a CNN divestiture reflects a broader trend in antitrust enforcement, where regulators increasingly favor structural solutions over ongoing conduct restrictions when addressing competitive concerns arising from large mergers. Divestitures have historically been used to preserve competition by maintaining independent ownership of overlapping businesses rather than relying on post-merger commitments.

Read more: EU Set to Clear Paramount-Warner Bros. Discovery Merger After Antitrust Concessions

California has emerged as a particularly influential regulator in the review process. Although the U.S. Department of Justice approved the merger following its federal antitrust review, state authorities retain the ability to pursue independent legal action under state competition laws. Reuters has reported that California and several other states have discussed potential litigation challenging the transaction despite federal approval.

The merger has generated significant debate throughout Hollywood, where labor organizations, creative professionals and independent exhibitors have warned that further consolidation could increase buyer power over creative labor, reduce opportunities for independent producers and reshape negotiations across the entertainment supply chain. Paramount has disputed those concerns, arguing that combining the companies would strengthen its ability to compete against large technology and streaming platforms while supporting increased investment in content production.

According to Variety, the discussion surrounding CNN centers on whether separating the cable news network from the combined company could alleviate some competitive concerns without requiring regulators to block the entire transaction. The publication reported that California officials continue evaluating potential remedies as their investigation proceeds.

Source: Variety