Paramount Threatens California Exit Over Blocked Merger
Paramount Threatens California Exit Over Blocked Merger
The News
Paramount Skydance CEO David Ellison is threatening to pull the studio out of California starting Oct. 1 unless state Attorney General Rob Bonta agrees to settlement talks over the lawsuit blocking Paramount's $110 billion takeover of Warner Bros. Discovery.
Ellison told top executives he is prepared to begin the move as early as Oct. 1, according to multiple reports.
Bonta, who is leading a 12-state coalition's antitrust suit against the deal, rejected the threat outright — calling it "blackmail" that "won't work."
Timeline
A coalition of 12 state attorneys general, led by Bonta, filed an antitrust suit seeking to block Paramount's merger with Warner Bros. Discovery. The Writers Guild of America also sued to stop the transaction, arguing it would harm writers and the job market.
News broke that Ellison had told senior executives he would move Paramount out of California on Oct. 1 unless Bonta came to the table. Bonta responded the same day, blasting the threat as blackmail.
The antitrust case is currently set to go to trial.
Reactions
Bonta called Ellison's plan "another attempt to blackmail the state" and said it "won't work." His office indicated it is proceeding toward trial.
Bonta signaled he remains open to structural remedies in the case, but dismissed Ellison's pledge to release 30 theatrical films a year as "an old, stale promise."
The Washington Times, Fox News and Breitbart framed the fight as a Democratic attorney general stalling a major deal, while the antitrust suit centers on competition concerns tied to Ellison's control of major news and entertainment assets.
Movie theater owners are divided over the merger, according to Variety, with the industry split on whether the tie-up would help or hurt exhibitors.
What's Next
Bonta's office is moving toward the March 2027 trial with no public indication that settlement talks are underway.
Ellison's Oct. 1 deadline sets up a high-stakes standoff. Reported relocation destinations under consideration include Tennessee, Texas and Georgia.
Whether any of the other states in Bonta's coalition break ranks to pursue their own settlement remains an open question.
More
Paramount employs a large California workforce, and the Hollywood Reporter noted the state has seen production spending stabilize in recent months — a recovery a Paramount exit could undermine. The dispute pits one of Hollywood's biggest studios against the state it has long called home.
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