Paramount CEO David Ellison told his 12-member senior executive team last week that the studio will begin relocating out of California on October 1 unless state Attorney General Rob Bonta agrees to negotiate a settlement in the antitrust lawsuit seeking to block Paramount's $111 billion merger with Warner Bros. Discovery.
The Paramount Skydance board has approved the move, Ellison said. Georgia, Texas and Tennessee are on his shortlist. Over five years, most studio jobs would follow.
The reason Ellison gave for the relocation is financial. On October 1, Paramount begins accruing a $7 million-per-day ticking fee payable to WBD shareholders until the deal closes.
A trial is scheduled for March 2027, meaning Paramount could owe roughly $1.2 billion before a verdict arrives. "We'll need to cut costs," Ellison told his team.
Bonta's response was swift and pointed. "In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through," he wrote on X. "Paramount has lost the plot as it continues to lose in court. It didn't work the first time, and it won't work this time."
The lawsuit, led by a 12-state coalition of Democratic attorneys general, argues the merger would reduce competition, raise prices and limit content options.
A federal judge has shown no urgency in accommodating Paramount's timeline.