Paramount Threatens to Leave Los Angeles Over Blocked $111-Billion Warner Bros. Merger
If regulators impede David Ellison's $111-billion merger, Paramount Skydance might shift its operations away from Los Angeles. In July, the company contemplated relocating to either Tennessee or Texas, a move that California Attorney General Rob Bonta labeled as "blackmail." Bonta's antitrust lawsuit, which has backing from 11 Democratic state attorneys general, has put the merger on hold. Paramount's board has greenlit a plan to potentially relocate its headquarters this fall, and Ellison may have to sell studio lots if the merger isn't completed by next month. A federal judge has temporarily halted the deal, with a trial scheduled for March. From Oct. 1, Paramount faces a $7 million daily payment to Warner Bros. Discovery shareholders, with warnings that the merger could result in 4,500 job losses and a $4 billion decline in economic output.
Key facts
- Paramount Skydance floated moving Paramount and Warner Bros. operations out of Los Angeles if the $111-billion merger remains blocked
- California Atty. Gen. Rob Bonta called the relocation threat "blackmail" and filed an antitrust lawsuit with 11 other Democratic state attorneys general
- Paramount's board approved a contingency plan to move headquarters from Hollywood as early as this fall
- A federal judge in Oakland temporarily blocked the deal; Paramount agreed not to finalize it until after a trial or June 1
- U.S. District Judge Araceli Martínez-Olguín set the trial for March
- Starting Oct. 1, Paramount must pay Warner Bros. Discovery shareholders an extra $7 million a day in ticking fees
- A Sept. 24 hearing will address Paramount's request for a $1.88-billion bond from California, Nevada, Oregon, New York and the Writers Guild of America
- A Los Angeles County report estimates the merger could cut nearly 4,500 positions over three years and put 5,865 more at risk, with $4 billion in lost economic output
Entities
Artists
- David Ellison
- Rob Bonta
- Rick Chavez Zbur
- Gavin Newsom
- Karen Bass
- Xavier Becerra
- Kevin Klowden
- Keyla Wood
- Eva Longoria
- Salma Hayek
- Daniela Kelly
- Adrin Nazarian
- Kelly LoBianco
- Sumner Redstone
- Larry Ellison
- Andrew Scott
- Julianne Moore
- Cerys Davies
Institutions
- Paramount Skydance
- Paramount
- Warner Bros.
- Warner Bros. Discovery
- HBO
- CNN
- CBS
- Comedy Central
- MTV
- TBS
- California Attorney General's Office
- Writers Guild of America
- Neighbors for Strong Communities
- Kreashen Studios USA
- Los Angeles County Department of Economic Opportunity
- Los Angeles Economic Development Corp.
- Melcene Advisory
- Oracle Corp.
- Nissan
- New Line Cinema
- Food Network
- Cartoon Network
- Tennessee Department of Economic and Community Development
- Politico
- Los Angeles Times
- Telluride Film Festival
- Variety
- Puck
- Semafor
- Paramount Pictures
- Paramount Global
Locations
- Los Angeles
- United States
- California
- Tennessee
- Texas
- Georgia
- Oakland
- Nevada
- Oregon
- New York
- Washington, D.C.
- Mexico
- Brazil
- Marina del Rey
- Melrose Avenue
- Burbank
- Redwood City
- Austin
- Nashville
- Gardena
- Colorado
- Hollywood
- 5555 Melrose Ave.
- 1515 Broadway
- Saudi Arabia
- Qatar
- United Arab Emirates