Paramount Eyes California Exit as Merger Deadline Looms
Paramount Eyes California Exit as Merger Deadline Looms
The News
Paramount is preparing to announce it is leaving California, according to internal discussions in the Los Angeles Mayor's Office and the California Attorney General's Office reported by TMZ and The Washington Times.
The move comes as the studio fights an antitrust suit filed by 12 state attorneys general, led by California's Rob Bonta, to block its merger with Warner Bros.
Officials were told the announcement was coming on Tuesday. It did not come as expected.
The Numbers
Fees of $7 million a day begin accruing if the merger does not close by Oct. 1.
Twelve state attorneys general are suing to stop the deal. Texas has landed more than 100 corporate headquarters since 2020, including Tesla and Charles Schwab, using state incentive funds.
Timeline
Tennessee officials extend a relocation invitation to Paramount. CEO David Ellison later assesses that the state lacks sufficient infrastructure.
Ellison meets Texas Lt. Gov. Dan Patrick to discuss a potential move. Texas officials convene meetings to coordinate a pitch after Tennessee's courtship becomes public.
TMZ reports that the L.A. Mayor's Office and the Attorney General's Office were told Paramount would announce its departure from California. No announcement follows. Politico reports the company is scouting Nashville office space.
Merger deadline. Ellison has said that if the legal fight with the 12 states is not resolved by then, he will move Paramount's headquarters to another state regardless of how the lawsuit turns out, The Hollywood Reporter reports.
Reactions
Settlement talks between Paramount and Bonta's office broke down, with Bonta saying Paramount was being unreasonable.
Right-leaning outlets treated the report as a defeat for Gov. Gavin Newsom, with Twitchy calling it "another massive L" for the governor and Citizen Free Press flatly reporting that Paramount is leaving California.
Coverage splits on how seriously to read the threat — whether it is a genuine relocation plan or leverage to push California officials into a settlement.
What's Next
Paramount has entered exploratory talks with Texas, Georgia and Tennessee about relocating its corporate headquarters, and is looking at office space in Nashville.
It is not clear whether the delayed announcement reflects changed circumstances or a simple postponement, what incentives any state has formally offered, or whether California will put a new settlement offer on the table before Oct. 1.
More
Paramount's corporate headquarters is still in California, home to most of the industry's talent, crew and production infrastructure — which is why a paper move of the headquarters and an actual move of the business are not the same thing.
Poll
Is Paramount's California exit real or a negotiating tactic?
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