Paramount CEO David Ellison has told senior executives that he will begin the process of moving the company out of California on Oct. 1. According to Deadline, the move comes as Attorney General Rob Bonta refuses to negotiate settlement in the antitrust case surrounding Paramount’s planned merger with Warner Bros. Discovery.
Ellison made the remarks during a meeting last week. He reportedly said he does not want to relocate Paramount, but no longer feels welcome in the company’s home state as the legal and public relations battle continues.
mxdwn previously reported on speculations of Paramount relocating away from California months earlier. Bonta quickly pushed back against the threat.
“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,” Bonta said.
He added that Paramount’s strategy “didn’t work the first time” and would not work now. The lawsuit is being led by Bonta and a group of 20 state attorneys general.
A federal trial is currently set for March 2027 in the Northern District of California. Paramount had previously pushed for a November trial date.
The timing is especially important for Paramount because Oct. 1 is when the company begins accruing a $7 million-per-day fee if the Warner Bros. Discovery transaction has not closed. Paramount would also owe Warner Bros. Discovery a $7 billion termination fee if the deal falls apart, unless the terms are renegotiated.
The antitrust case focuses on three areas: wide-release films, blockbuster films and cable network programming. Ellison has argued that the combined company would still support theatrical releases and has promised that the studios would release 30 films a year with significant theatrical windows.
Deadline also reports that a Paramount relocation would begin with the company’s headquarters before expanding to studio jobs. Tennessee, Texas and Georgia have all been mentioned as possible destinations.
For now, the dispute appears to be moving closer to trial rather than settlement, with Paramount facing both mounting legal pressure and potentially massive financial penalties if the merger collapses.