Is Paramount getting ready to leave California? It’s looking likely. Last month, Paramount CEO David Ellison told a handful of top executives that the company would begin the process of leaving California on October 1 if California Attorney General Rob Bonta refused to negotiate a settlement to the state’s antitrust lawsuit challenging the planned $111 billion merger with Warner Bros. Discovery.
Those negotiations haven’t been productive, and now the word is that the company is “deadly serious” about leaving the state, which has been home to Paramount for over 100 years.
Paramount Has Hired Moving Trucks
According to Deadline, Los Angeles Mayor Karen Bass and AG Bonta have been told that a deposit has been put down on moving trucks. I wonder how many trucks that would take…
“Mayor Bass is focused on protecting and fighting for jobs in L.A., including critical jobs in the entertainment industry that have been a vital part of Los Angeles’ economy,” said a spokesperson for City Hall. “She’s been engaged on this issue and will continue to fight to make sure L.A. is home to Hollywood.“
A spokesperson for AG Bonta added, “We cannot comment on a company’s plans. It’s no secret that Paramount has been making this threat, despite its alleged commitment to California and Hollywood. What Paramount decides to do is Paramount’s choice alone. We’ll continue to apply the law without fear or favor and continue to be open to coming to the table for good faith discussions.“
Bonta has called this threat “blackmail” to stop the antitrust lawsuit, and although Paramount could be bluffing, Los Angeles is taking it very seriously.
That October 1 deadline is quickly approaching, and if the move goes forward, it would mean thousands of jobs lost and billions of dollars in losses for the Golden State. But where would Paramount go? The company is reportedly looking to set up its new corporate headquarters in Georgia, Tennessee, or Texas.
Tick Tick Tick…
California and 11 other states have filed an antitrust lawsuit against Paramount’s $111 billion merger with Warner Bros. Discovery. This has significantly delayed proceedings, and it could prove very costly for Paramount. There’s a $7 million-per-day “ticking fee” that Paramount must pay Warner Bros. for each day the transaction does not close after September 30. With a possible delay of another year, that figure could add up mighty quickly. Additionally, if the deal ends up falling apart, Paramount is on the hook for a $7 billion breakup fee.
The case is currently scheduled to go to trial in March 2027 in federal court in California. A long, costly wait.
Do you think Paramount will really leave California?
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