Paramount CEO Threatens California Exit Over Merger Deal

Paramount CEO David Ellison has indicated a potential move of the company out of California if a settlement is not reached with State Attorney General Rob Bonta regarding an antitrust case by October 1st. Ellison reportedly informed his executive leadership team that while his primary goal is to retain Paramount's 30,000 jobs in Southern California, he will relocate the company if negotiations fail before the $7 million per day ticking fee for the Warner Bros. Discovery merger comes into effect.

Tennessee, Texas, and Georgia have emerged as potential alternative locations for Paramount's operations, with Ellison reportedly exploring these options for a five-year plan. Such a move would significantly impact California's economy and its status as a hub for major Hollywood studios. The plan would involve selling the current Paramount lot, relocating executives and business functions, while maintaining some presence in California.

The ultimatum comes as the $110 billion Warner Bros. Discovery acquisition faces delays, with a trial date set for March in the antitrust case, potentially extending the legal battle well into the summer. Ellison is actively seeking support from major theater chains to allay concerns about fulfilling a commitment to release 30 films annually.

Despite the ongoing legal challenges, Ellison appears confident the Warner Bros. Discovery deal will close. However, if the merger is blocked by state attorneys general, Paramount would owe a $7 billion termination fee to Warner Bros. Discovery.