Paramount Skydance Corp (PSKY.US) Chief Legal Officer Miken Delrahim stated that selling CNN is "on the table" as the company seeks to finalize its $110 billion acquisition of Warner Bros. Discovery (WBD.US).

Delrahim indicated that a potential sale would be expected if it helps resolve a prolonged antitrust lawsuit. The lawsuit, led by California Attorney General Rob Bonta and 11 other states, argues that the newly formed "media giant" could raise prices and reduce competition in film and cable television.

Paramount Skydance is attempting to make its deal appear less monopolistic by putting its entire news network up for auction. Notably, before this massive merger, Skydance had already merged with Paramount, integrating assets from production studios to CBS News. By merging with Warner Bros. Discovery, it will also incorporate HBO, DC Studios, and TNT, creating a news and content behemoth.

After receiving approvals from U.S. federal regulators, the UK, the EU, China, and other regions, this lawsuit has become the final obstacle to the transaction. Delrahim is also the first company executive to publicly state that Paramount Skydance might leave California, following earlier reports this week attributing this stance to CEO David Ellison.

Delrahim declared, "At a certain point, you have a duty to your shareholders, a fiduciary responsibility, and these are the factors you consider." "If I were the governor, I wouldn't want to see Hollywood leave the state. I wouldn't want to see a big company like Paramount move to another state. This is not a threat. You just go to places that welcome you."

Reports indicate that Paramount Skydance may relocate its operations to Tennessee, Texas, or Georgia, especially if the merger with Warner Bros. Discovery is not completed by an October 1 deadline, after which a $7 million per day delay penalty would begin. Leaving California could also save an additional $500 million annually in taxes, along with billions of dollars from selling Paramount or Warner Bros. studio lots.

Meanwhile, California Governor Gavin Newsom is reportedly concerned about the state's antitrust lawsuit and is encouraging Attorney General Bonta's office to reach a settlement out of court.