Federal Communications Commission (FCC) Chair Brendan Carr stated on Wednesday, July 15, 2026, that California might drop its joint lawsuit against Paramount Skydance’s acquisition of Warner Bros. Discovery if CNN is spun off as its own media entity.

“There was a story that broke a couple weeks ago that said that California was floating the idea, according to news reports,” Carr said, referring to the potential CNN spinoff.

This development comes amid ongoing regulatory scrutiny of the merger, with California's lawsuit posing a significant challenge to the acquisition. The possibility of spinning off CNN could address some of the concerns raised by the state.

Sources