Paramount chief executive David Ellison has told senior executives he will begin relocating operations out of California on October 1 unless Attorney General Rob Bonta agrees to settlement talks over the state's antitrust lawsuit blocking the company's merger with Warner Bros Discovery. Bonta called the ultimatum an extortion attempt.
The board has approved a five-year relocation plan targeting Tennessee, Texas, or Georgia, with most film and television jobs moving and a Hollywood studio lot potentially sold if the Warner deal closes. California and a coalition of 12 state attorneys general sued in July to block the consolidation, arguing it would create a monopoly controlling more than a quarter of US theatrical releases.
The standoff carries steep financial consequences: Paramount faces ticking fees of $650 million per quarter if the deal does not close by September 30, with a $7 billion penalty if the June 2027 deadline passes. A judge has scheduled trial for early March 2027.