FCC Chair Calls State Challenge to Paramount-Warner Deal ‘Illegitimate’

Federal Communications Commission Chairman Brendan Carr said the antitrust lawsuit filed by a coalition of twelve state attorneys general against Paramount Skydance’s proposed purchase of Warner Bros. Discovery is not a legitimate case. Speaking at the Hill Nation Summit in Washington, D.C., Carr expressed doubt that the states’ challenge would succeed, noting reports that California might drop its litigation if the deal required the divestiture of CNN.

"Now, I don’t understand what antitrust theory you have that says there’s a problem with this acquisition that is made or broken based on one cable channel being included," Carr said.

He added that the ultimate decision would rest with the courts. The states’ lawsuit seeks a temporary restraining order and a preliminary injunction to halt the merger, arguing it would lessen competition in theatrical film distribution and cable programming, potentially leading to higher prices and reduced investment in content.

The proposed transaction, valued at $110 billion, includes provisions that could increase the purchase price if the deal closes after September 30, and a court-ordered delay could complicate financing and other closing conditions. Separate legal actions include a shareholder derivative suit in Delaware alleging that Paramount executives compromised editorial independence for political favor.

Carr also denied allegations that the FCC had received gifts from Paramount, stating he sees “zero basis” for such claims. The FCC had previously been reported to have accepted tickets to the Kennedy Center gala from CBS/Paramount, but commissioners did not comment on the report.

Paramount has indicated it may keep its studio operations in California, while some state officials have suggested the company consider relocating to states with more business-friendly environments. No public relocation plans have been announced.