Clearing the way for a $110 billions acquisition? Paramount Sky Dance (PSKY.US) plans to sell CNN, and may even consider leaving California.

According to Golden Ten Data, Paramount SkyDance (PSKY.US) Chief Legal Officer Makan Delrahim stated that the sale of CNN has been “put on the agenda,” with the company currently seeking to complete the acquisition of Warner Bros. Discovery (WBD.US), valued at 110 billion dollars.

Delrahim indicated that if a longstanding antitrust lawsuit can be resolved, the potential sale transaction would be expected. The lawsuit, led by California Attorney General Rob Bonta and 11 other states, asserts that the newly-formed “media giant” could drive up prices and weaken competition in the film and cable TV sectors.

Paramount SkyDance (PSKY) is attempting to make its transaction appear less monopolistic by putting its entire news network up for auction. Notably, prior to this massive merger, SkyDance had already merged with Paramount, consolidating assets ranging from production studios to CBS News and others.

Through the merger with Warner Bros. Discovery, it will also absorb assets including HBO, DC Studios, and TNT, becoming a powerhouse in news and content. After obtaining approval from U.S. federal regulators, the UK, EU, China, and other regions, the lawsuit has become the final obstacle for the transaction.

Delrahim is also the first Paramount SkyDance executive to publicly state the company might exit California, following earlier reports this week attributing the stance to CEO David Ellison.

Delrahim asserted, "At a certain point, you owe a duty to your shareholders, a fiduciary responsibility, and those are the factors you must weigh," "If I were the governor, I would not want to see Hollywood leave the state. I wouldn’t want to see a major company like Paramount relocate to another state. This isn’t a threat. You simply go where you’re welcomed."

Reports suggest Paramount SkyDance may move its operations to Tennessee, Texas, or Georgia, especially if the merger with Warner Bros. Discovery is not completed by October 1, when a daily delay penalty of 7 million dollars will take effect.

Leaving California could also save an additional 500 million dollars in annual taxes, plus billions from selling Paramount or Warner studio facilities. Meanwhile, California Governor Gavin Newsom is reportedly concerned about the state’s antitrust lawsuit and is encouraging Bonta’s office to settle out of court.