Paramount Skydance is keeping all options open, including selling CNN, to resolve a lawsuit. The company's chief legal officer acknowledged a potential move out of California. Britain has cleared the takeover, leaving California's litigation as the last major obstacle. California and eleven other states seek to block the merger, citing competition concerns. They argue the deal would create a media behemoth able to raise prices.

Paramount's CEO David Ellison warns of a California exit if the US state does not agree to talks, according to reports.

California Attorney General Rob Bonta has reacted to reports that Paramount Skydance plans to leave the state amid uncertainty over merger with Warner Bros. | Hollywood