Paramount threatens to leave California
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The gist
Paramount CEO David Ellison is threatening to leave California over its $110 billion merger fight.
The exit threat pressures regulators and could cost Hollywood thousands of jobs.
Background
Paramount agreed to merge with Warner Bros. Discovery in a $110 billion deal, but California Attorney General Rob Bonta and 11 other state attorneys general filed antitrust lawsuits to block it, and a federal judge temporarily blocked the merger. Since July, when the state sued, Paramount has been threatening to leave California. In August, Ellison told Paramount's brass the company would begin leaving California on Oct. 1 if Bonta did not agree to settlement talks.
How it unfolded
- Jul 2026California sued to block Paramount's merger with Warner Bros. Discovery; Paramount has been threatening to leave the state since then.
- Aug 2026Ellison told Paramount's brass the company would begin leaving California on Oct. 1 if Bonta did not agree to settlement talks, Puck reported.
- Sep 16, 2026TMZ reported Paramount is about to leave California; sources said the Mayor's and A.G.'s offices were told the announcement would come that day, but it did not happen. Reports also mentioned potential moves to Texas, Tennessee and Georgia, with Politico and The Wrap noting properties in Nashville and Atlanta.
- Sep 17, 2026KTLA reported CEO David Ellison is threatening to leave California as it fights for its $110 billion merger; Deadline reported Paramount Skydance Corp. is preparing to leave; TheWrap reported Paramount informed the offices of Los Angeles Mayor Karen Bass and Attorney General Rob Bonta that it is prepared to formally announce its plans to leave.
- Sep 18, 2026Daily News reported the departure would reshape Hollywood's landscape and see thousands of jobs vanish, according to a confidential L.A. economic report; Fox Business reported the possible move puts California on notice; MySanAntonio reported Paramount has floated relocating out of California, including to Texas.
- Oct 1, 2026Date Ellison threatened to leave California if a settlement wasn't reached; date Paramount would begin racking up millions in 'ticking fees' of $7 million each day, payable to Warner Bros. Discovery shareholders if the deal eventually closes.
Who’s saying what
- Official
- Steven Kang, Bass' liaison with the film industry, said creating a film-friendly environment is the first priority and 'We're hoping they don't leave,' calling it an issue between the attorney general and Paramount.
- Official
- Bonta's office said it cannot comment on a company's plans, that Paramount has been making this threat despite its alleged commitment to California, and that it will continue to apply the law without fear or favor and remain open to good faith discussions.
- Analysts
- Neama Rahmani, a Los Angeles-based trial lawyer, characterized it as both a current pressure tactic and future contingency plan if Paramount and California don't work out a deal or if Paramount loses its antitrust trial next year.
- Analysts
- Perry said Paramount is genuinely willing to leave but leaving is still the fallback; the smart play is to use a believable threat to get a settlement on favorable terms, and if October passes without a deal, the accruing costs could turn the fallback into the plan.
- Support
- Brian Gannon, senior director of film marketing for the Austin Film Commission, said Texas is a top-tier destination for major media production, citing its four-decade film legacy, experienced crew base, studio facilities, local incentives, and expanded $1.5 billion film incentive investment.
Still unverified
Paramount is rumored to leave California over the Warner Bros. Discovery merger. Sources told Deadline that Paramount executives told the offices of Los Angeles Mayor Karen Bass and Attorney General Rob Bonta they're planning to leave the state. The Mayor and the A.G. were told the announcement would come on Sep 16, but it did not happen; it is unknown if circumstances changed or if there was a delay. The big question is whether Paramount is truly prepared to move or if this is Ellison upping the ante in hopes that Bonta will blink and move to settle.