Paramount to Leave California Amid Antitrust Battle, Stalled Warner Bros Merger
3 hours ago
- David Ellison, CEO of Paramount, is threatening to move the company out of California if the state does not drop its efforts to block the merger with Warner Bros Discovery.
- Paramount has informed L.A. Mayor Karen Bass and California Attorney General Rob Bonta that it is 'deadly serious' about relocating after over 100 years in Hollywood.
- The relocation is being considered to Georgia, Tennessee, or Texas, with a deposit reportedly placed on moving trucks.
- Thousands of jobs would be lost if Paramount moves, and even without relocation, the merged company expects layoffs to achieve $6 billion in cost savings.
- Attorney General Bonta has accused Paramount of 'blackmail' and 'saber-rattling' to sway public opinion on the merger.
- A recent L.A. County report warns of significant economic losses: 2,750–5,550 job-years and $1–2 billion in economic output from 2026 to 2031 if Paramount relocates.
- The merger is under an antitrust lawsuit filed by California and 11 other states, with a trial date set for March 2, and settlement meetings scheduled for next month.
- A $1.88 billion bond request by Paramount to cover 'extraordinary losses' during litigation is pending, and a ticking fee of $7.2 million per day starts on October 1.
- The U.S. Department of Justice has sided with Paramount on jurisdiction and the bond request, potentially leading to Supreme Court intervention.
- A bright spot: Paramount's post-merger commitment to release at least 30 films annually for three years, which could generate 1,020–2,760 job-years and $377 million–$1 billion in economic output in California.