Paramount CEO David Ellison has escalated his threat to move the studio’s headquarters out of California if the state’s attorney general does not negotiate to resolve the ongoing antitrust lawsuit. The lawsuit, led by California AG Rob Bonta and supported by 11 other states, aims to block Paramount’s $111 billion merger with Warner Bros.

According to a report by Puck News, Ellison is in contact with multiple states including Georgia, Tennessee, and Texas, which are considered more business-friendly. Ellison is reportedly developing a five-year plan to relocate most jobs out of California while maintaining a Hollywood presence.

The merger has been put on hold pending a court decision, with the antitrust trial scheduled for March 2027. Until then, Paramount may be required to pay Warner Bros Discovery (WBD) a multimillion-dollar "ticking fee," potentially amounting to at least $650 million quarterly if the merger remains unresolved.

California’s attorney general has expressed commitment to stopping what he calls an "illegal merger," warning it would lead to higher costs, fewer options, and fewer people making movies. Bonta’s office remains focused on protecting California’s economy and businesses that comply with the rules.

Separately, California’s attorney general announced that no criminal charges will be sought against a police officer involved in a 2020 fatal shooting in the San Francisco Bay Area amid protests following George Floyd’s death.

Sources