Paramount Sets California Exit Plans Over Antitrust Battle With Blue States & Stymied $111B WBD Merger
News Source
β’Wed, 16 Sep 2026 19:14:23 +0000
π° What Happened
Paramount has told officials it is serious about leaving California. Sources say the company has warned the Los Angeles mayor's office and the state attorney general.
The threat comes as its $111bn merger with Warner Bros Discovery is tied up in an antitrust lawsuit. Twelve states and the Writers Guild of America sued in July to block the deal.
Paramount says the legal fight is costing it money. A $7m-a-day fee in the Warner Bros contract starts on 1 October.
π The Backstory
Leaks from chief executive David Ellison's team said he would move Paramount out of California unless state attorneys general backed off. California's attorney general has called the company's approach blackmail.
Los Angeles County's Economic Development Corporation says a full move could cost the state between 28,990 and 57,980 jobs. Yearly losses in economic output could reach $21.2bn.
A trial is set for 2 March 2027, with settlement talks next month. Paramount has been based in Hollywood for over 100 years.
π― Why It Matters
Film and TV jobs support thousands of families in Los Angeles. A studio move would hurt local workers long before the courts settle the merger.
Paramount has told officials it is serious about leaving California. Sources say the company has warned the Los Angeles mayor's office and the state attorney general.
The threat comes as its $111bn merger with Warner Bros Discovery is tied up in an antitrust lawsuit. Twelve states and the Writers Guild of America sued in July to block the deal.
Paramount says the legal fight is costing it money. A $7m-a-day fee in the Warner Bros contract starts on 1 October.
Leaks from chief executive David Ellison's team said he would move Paramount out of California unless state attorneys general backed off. California's attorney general has called the company's approach blackmail.
Los Angeles County's Economic Development Corporation says a full move could cost the state between 28,990 and 57,980 jobs. Yearly losses in economic output could reach $21.2bn.
A trial is set for 2 March 2027, with settlement talks next month. Paramount has been based in Hollywood for over 100 years.
Film and TV jobs support thousands of families in Los Angeles. A studio move would hurt local workers long before the courts settle the merger.