Paramount CEO David Ellison is considering a plan to move the company's operations out of California, according to multiple reports. The proposed relocation would unfold over five years, shifting the majority of film and TV jobs to another state.
The potential move is reportedly triggered by antitrust lawsuits filed by several US states and the writers' union against Paramount's planned acquisition of rival Warner Bros. California Attorney General Rob Bonta has publicly criticized the relocation reports, calling them an attempt at 'blackmail.'
Paramount is attempting to 'blackmail the state into letting an illegal deal through.'
Value of the planned Paramount-Warner Bros. merger.
Tennessee, Georgia, and Texas are being considered as potential new locations for Paramount. Sources note these are states where the Republican Party holds strong political influence. The relocation plan reportedly received approval from Paramount's board of directors as of October 1st, though this has not been independently confirmed.
Merger complications and financial stakes
If the acquisition succeeds, Paramount could sell its Hollywood studio lot. However, the deal's completion is far from certain. A delay could cost Paramount at least $1.3 billion in additional payments to Warner Bros. shareholders, with quarterly commitments of about $650 million if the takeover is not completed by the end of September.
The companies have reportedly set a deadline of June 4, 2027, to finalize the takeover. If missed, Warner Bros. could reportedly terminate the agreement and collect a $7 billion penalty from Paramount. A judge has scheduled the antitrust lawsuits for early March of next year.
David Ellison, who purchased Paramount for $8 billion last year and merged it with Skydance Media, has publicly addressed concerns about media independence. In an op-ed in The New York Times, he wrote, 'I do not aspire to lead these companies to bend their newsrooms to my views.'
The current antitrust lawsuit was filed by California and other Democratic-led states. Critics believe the merger would harm the entertainment industry and lead to mass layoffs. Some see parallels with Tesla, which under Elon Musk relocated its headquarters to Republican-led states in recent years to seek more freedom and lower taxes.
