Paramount Threatens to Leave California Over Warner Bros. Merger Antitrust Suit
David Ellison, the CEO of Paramount Skydance, has issued a warning that the company may move out of California beginning October 1 if Attorney General Rob Bonta does not reach a settlement regarding the antitrust lawsuit involving 12 states that is blocking the merger with Warner Bros. Discovery. This announcement was made during a meeting on August 5, where the board also approved the potential relocation. The first phase could see the Los Angeles headquarters move, with most jobs transferred out of state within five years, possibly to Georgia, Texas, or Tennessee. The trial is set for March 2, 2027, with a daily fee of $7 million owed to Warner Bros. Discovery shareholders starting October 1, accumulating to approximately $1.2 billion by the trial's conclusion. Additionally, Paramount is exploring $24 billion investments from sovereign wealth funds in Saudi Arabia, Qatar, and the UAE.
Key facts
- David Ellison threatens to move Paramount out of California starting Oct. 1 if no settlement talks with California AG Rob Bonta.
- Paramount Skydance board approved the potential relocation.
- The antitrust lawsuit was filed by 12 states to block the Paramount-Warner Bros. Discovery merger.
- Trial scheduled to start March 2, 2027.
- Paramount will accrue a ticking fee of $7 million per day to Warner Bros. Discovery shareholders starting Oct. 1.
- Potential new locations include Georgia, Texas, and Tennessee.
- Paramount has $24 billion in commitments from sovereign wealth funds of Saudi Arabia, Qatar, and UAE.
- Paramount Skydance had about 17,600 workers worldwide at end of 2025.
- Warner Bros. Discovery had 35,500 workers.
- Ellison expects Paramount to prevail in the antitrust case.
Entities
Institutions
- Paramount
- Paramount Skydance
- Warner Bros. Discovery
- CBS
- Variety
- Puck
- Semafor
- Paramount Pictures
- Paramount Global
- California Attorney General's Office
Locations
- California
- Los Angeles
- Hollywood
- 5555 Melrose Ave.
- New York
- 1515 Broadway
- Georgia
- Texas
- Tennessee
- Saudi Arabia
- Qatar
- United Arab Emirates