A Paramount source is pushing back on reports that CEO David Ellison could sell CNN in an effort to resolve the legal battle surrounding the company’s ongoing acquisition of Warner Bros. Discovery.
There is “zero truth” to the notion that Ellison is prepared to sell CNN in connection with the WBD transaction, a source with knowledge told TheWrap Thursday.
“CNN is not for sale,” the source added.
The denial follows comments from Paramount chief legal officer Makan Delrahim at Politico’s California Agenda conference this week that prompted headlines suggesting the company could divest CNN to help secure its $110 billion WBD deal.
Asked whether Paramount would consider selling CNN if doing so would allow the transaction to move forward, Delrahim said “everything is on the table.” Reuters subsequently reported that a potential sale of the cable news network was among the options the company could consider.
CNN chief media analyst Brian Stelter, who first reported the news Thursday, said that Delrahim’s remarks were intended to convey Paramount’s willingness to negotiate with California Attorney General Rob Bonta, rather than signal that Ellison is preparing to unload CNN.
“He was saying, basically, ‘we’re willing to talk,’” Stelter wrote.
California and 11 other states have sued to block Paramount’s acquisition of Warner Bros. Discovery on antitrust grounds. The lawsuit has emerged as a major obstacle to completing the transaction.
The legal challenge has also put scrutiny on CNN’s place within the proposed combined company, which would bring Warner Bros. Discovery’s cable networks, studios and streaming assets under the same corporate umbrella as Paramount’s existing media and entertainment businesses.
CNN has become a flashpoint surrounding the deal. Ellison has argued that some opposition to the transaction is rooted in concerns over his stewardship of the network, while Paramount has explored measures intended to safeguard CNN’s editorial independence.
Delrahim also said this week that Ellison wants to “bring [CNN] back to news” after the acquisition closes.
