Paramount is weighing both governance protections for CNN and a possible divestiture of the network as it tries to complete its proposed Warner Bros. Discovery acquisition despite a California-led antitrust lawsuit. Chief Legal Officer Makan Delrahim said at Politico's California Agenda conference that selling CNN is "on the table," the clearest public sign yet that Paramount could use the cable news network as a concession even after the deal cleared federal antitrust review and regulators in the U.K., EU and China. Media insiders including CNN's Brian Stelter and Puck's Dylan Byers disputed that CNN is actively being offered up, underscoring conflicting signals around David Ellison's intentions. The state case, brought by California Attorney General Rob Bonta and 11 other states, argues the merger would increase concentration across movies and television, including common control of CNN, CBS News and HBO. Delrahim also publicly confirmed that Paramount could consider relocating out of California, framing it as a shareholder duty as the company faces about $7 million a day in fees if the deal is not completed by Oct. 1 and potential annual state tax savings of roughly $500 million. Tennessee, Texas and Georgia have been mentioned as possible destinations. Paramount Skydance shares rose 1.1% in midday trading after Delrahim's comments, while Warner Bros. Discovery gained 1.4%. The standoff highlights how state attorneys general can still threaten major transactions after federal approval, potentially reshaping merger strategy in media and beyond.