FCC Chair Brendan Carr says California lawsuit could be dropped if CNN is spun off in Paramount-Warner deal

Federal Communications Commission Chair Brendan Carr said California could choose to drop its joint lawsuit challenging Paramount Skydance’s acquisition of Warner Bros. Discovery if CNN were spun off into a separate media company, according to remarks he made Wednesday reported by The Hill.

Carr’s comments, as described by the publication, referenced a recently reported idea that California was “floating the idea” of dismissing or narrowing the case contingent on a CNN separation. The FCC chair did not say the condition had been formally agreed to, but he suggested the litigation could be affected by how the companies structure the transaction and related assets.

The California lawsuit, brought by state attorneys general and pursued in federal court, is aimed at stopping or undoing aspects of the proposed merger involving major national broadcast and cable networks. The reporting around Carr’s statement focuses specifically on CNN’s status in any restructuring that could alter competition and regulatory analysis tied to the consolidation.

Carr, according to The Hill, framed the point as one that could resolve the dispute without continuing a case that states are actively litigating. The practical effect of a dismissal or settlement would depend on the court posture of the case and the exact terms of any corporate separation, including which assets would go to CNN and how the remaining entities would operate.

The FCC does not decide the validity of the merger in the same manner as the court proceedings, but Carr’s remarks highlight how state litigation and federal regulatory considerations can intersect in disputes over media consolidation. The statements also underscore that negotiations over transaction structure can be driven by litigation risk and the prospect of narrowing issues before a judge.

It was not immediately clear, based on the reporting, whether California officials would adopt the proposed condition or whether the companies behind the transaction would pursue a CNN separation that could satisfy the state’s litigation concerns. The next steps would likely hinge on whether the parties propose revisions to the deal and whether California files a motion to dismiss, settles, or continues to press its claims in court.