Paramount is signaling that its long-running California presence could be on the line as the company’s $111 billion merger with Warner Bros. Discovery remains caught in an antitrust fight led by state attorneys general and the Writers Guild of America.
According to the source material, leaks from David Ellison’s inner circle had indicated that the CEO was prepared to pull Paramount out of California if state attorneys general did not retreat from their lawsuit seeking to block the Warner Bros. Discovery deal. That threat now appears to have moved beyond rumor: Paramount leadership has told key officials and stakeholders that the company is “deadly serious” about leaving California after more than 100 years.
Among those informed were Los Angeles Mayor Karen Bass and California Attorney General Rob Bonta. TMZ first reported that Paramount had contacted city and state officials with some form of exit announcement.
Paramount did not comment when contacted by Deadline about the reported exit plans or how far along those plans may be.
The possible move would carry major stakes for Los Angeles. A spokesperson for City Hall told Deadline that Bass is focused on “protecting and fighting for jobs in L.A., including critical jobs in the entertainment industry that have been a vital part of Los Angeles’ economy.” The spokesperson added that Bass “has been engaged on this issue and will continue to fight to make sure L.A. is home to Hollywood.”
At the center of the local concern is keeping Paramount’s corporate headquarters, and the thousands of jobs connected to it, in Los Angeles.
The merger fight driving the pressure
The relocation threat is unfolding against the backdrop of the antitrust lawsuit filed July 13 by a dozen states and the Writers Guild of America. The suit is aimed at stopping Paramount’s proposed $111 billion merger with Warner Bros. Discovery.
The legal battle includes California Attorney General Rob Bonta and 11 other blue-state attorneys general. The merger with David Zaslav’s Warner Bros. Discovery has been stalled by the case, with a trial currently set to begin March 2, 2027.
Before then, court-ordered settlement meetings are set for next month. A hearing is also scheduled for next week over Paramount’s request that plaintiffs post a $1.88 billion bond to cover what the company describes as anticipated “extraordinary losses.”
Those losses are tied to the merger contract. According to the source material, Paramount has been pointing in particular to a $7 million-per-day ticking fee in the Warner Bros. Discovery agreement that begins Oct. 1. Rumors about an Oct. 1 deadline had circulated from the Melrose lot since the legal fight formally escalated two months ago.
Ellison’s move toward a possible California exit comes almost two weeks before that Oct. 1 date.
What happens next?
The immediate calendar is now packed. Paramount is seeking a $1.88 billion bond from the plaintiffs at a hearing next week, settlement meetings are expected next month, and the $7 million-per-day fee is set to begin Oct. 1 under the merger contract.
For Los Angeles officials, the parallel fight is over whether Paramount’s corporate base and the jobs attached to it remain in the city. For Paramount, the unanswered question is how far it is prepared to go if the antitrust case continues to hold up the Warner Bros. Discovery merger.