Key facts
- Paramount CEO David Ellison is considering relocating the company out of California.
- The potential move is contingent on California AG Rob Bonta agreeing to settlement talks by October 1.
- The deadline is linked to a $7 million daily fee associated with the Warner Bros. Discovery acquisition.
- Paramount's board has approved a plan to move operations to states like Tennessee, Texas, or Georgia.
- California AG Rob Bonta has called Paramount's actions a "blackmail" attempt and deems the deal illegal.
Paramount CEO David Ellison is considering a significant relocation of the Hollywood studio out of California if the state's Attorney General, Rob Bonta, does not agree to settlement talks regarding the company's antitrust battle over the acquisition of Warner Bros. Discovery. Ellison has set an October 1 deadline for these negotiations, which is also when a $7 million per day "ticking fee" associated with the $110 billion deal is set to commence.
Ellison informed Paramount's Executive Leadership Team that the company's board has approved a five-year plan to move operations to states such as Tennessee, Texas, or Georgia, estimating potential annual tax savings of $500 million. He indicated that the headquarters would be the first to relocate, with incentives from potential new home states financing the move. The company might also sell its studio lots, valued up to $4 billion.
California AG Rob Bonta has responded critically, accusing Paramount of attempting to "blackmail" the state and calling the proposed merger illegal. Bonta is leading a coalition of 20 state Attorneys General in the antitrust case, which is scheduled for trial in March 2027. Paramount, however, has accused Bonta of political maneuvering and has offered to engage in settlement talks with written concessions.
Texas Governor Greg Abbott's office has expressed strong interest in attracting Paramount, highlighting the state's favorable business climate with no corporate or personal income tax. Despite the potential relocation of operations and jobs, Paramount would likely maintain a creative presence in Hollywood due to existing talent and vendor relationships.