Antitrust feud has Paramount considering California exit, chief legal officer says

Paramount's chief legal officer said the company may join other companies that have fled California in the face of burdensome regulations. 

Makan Delrahim, Paramount's top legal official, told the audience at a Politico event that Paramount Skydance CEO David Ellison is committed to California, but "there is a point at which you have a fiduciary duty to shareholders." 

“You have to take a look at the business environment and look to see what’s best for not only the community and the business. And ultimately, you know, go to the place where you’re wanted," Delrahim said, Politico reported. 

Paramount agreed last month to delay its planned $81 billion merger with Warner Brothers Discovery until next June or until the merits of a lawsuit against the merger are resolved. The move comes after a federal judge paused the merger Monday until Aug. 17 to allow the lawsuit from state attorneys general more time to move through the court system. 

Twelve states, led by California, have sued to block the merger, alleging that it would "extinguish competition" in Hollywood and reduce choices for consumers. 

Paramount said it would not close the merger with Warner Brothers until at least five days after the lawsuit is resolved or until June 1, 2027, whichever comes first. The company said the decision was a win because it would clear the way for the lawsuit to go to trial.

Ellison is an ally of President Donald Trump, and Democrats have raised concern that CNN, one of Warner Bros. Discovery’s key assets, would be under the control of a Trump ally if the deal went through. Ellison said in a New York Times op-ed in July that he doesn't intend to influence the companies' newsrooms.