Clearing the obstacles for the $110 billion merger? Paramount Global (PSKY.US) plans to sell CNN and is even considering exiting California.

Paramount Pictures' Chief Legal Officer Mikin Delrahim has stated that the sale of CNN has been "put on the agenda" as the company is currently seeking to complete its acquisition of Warner Bros. Discovery (WBD.US) valued at $110 billion. Delrahim indicated that a potential sale would be expected if a long-drawn antitrust lawsuit could be resolved. The lawsuit, led by California Attorney General Rob Bonta and 11 other states, argues that this new "media giant" could raise prices and weaken competition in the film and cable television sectors. Paramount Sky Dance (PSKY) is attempting to make its transaction appear less monopolistic by pushing its entire news network into an auction. Notably, prior to this massive merger, Sky Dance had already merged with Paramount, consolidating numerous assets, including production studios and CBS News. By merging with Warner Bros. Discovery, it will also incorporate assets such as HBO, DC Films, and TNT, creating a behemoth of news and content. After obtaining approval from U.S. federal regulators, the UK, EU, China, and other regions, the lawsuit has become the last obstacle facing the deal. Delrahim is also the first company executive to publicly suggest that Paramount Sky Dance might leave California, following reports earlier this week attributing this statement to CEO David Ellison. Delrahim asserted, "At some point, you have an obligation to your shareholders, a fiduciary responsibility, and those are the factors you have to 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 other states. This is not a threat. You should simply go to those places that welcome you." Reports suggest that Paramount Sky Dance may relocate its operations to Tennessee, Texas, or Georgia, especially if the merger with Warner Bros. Discovery is not completed by October 1, when a $7 million daily penalty for delays would come into effect. Leaving California could also save an additional $500 million in taxes annually, along with the billions in funds generated from selling Paramount or Warner production facilities. Meanwhile, California Governor Gavin Newsom is clearly concerned about the state's antitrust lawsuit and is encouraging Bonta's office to reach a settlement outside of court.