Paramount is reportedly getting serious about leaving California as its legal fight over the company’s planned $110 billion merger with Warner Bros. Discovery continues. Sources told Deadline that Paramount executives have informed officials and stakeholders that the company is “deadly serious” about potentially moving its corporate headquarters out of California after more than a century in the state.
Los Angeles Mayor Karen Bass and California Attorney General Rob Bonta are among those reportedly informed. Bonta joined attorneys general from eleven other states in filing an antitrust lawsuit challenging the merger, the Writers Guild of America has also sued. Bass’ office said the mayor remains focused on protecting entertainment jobs and keeping Hollywood in Los Angeles.
Deadline notes that Georgia, Tennessee, and Texas have reportedly been considered as possible destinations. Paramount has also made inquiries about commercial real estate that could meet its needs.
Even without a relocation, the merger could bring workforce reductions as Paramount seeks $6 billion in promised cost savings. The combined company is projected to carry around $80 billion in debt, although executives have maintained that job losses would be minimal.
The Deadline report emphasizes that the legal battle has left the merger in limbo since July. A trial is scheduled for March 2, while court-ordered settlement meetings are expected next month.
Paramount is also requesting a $1.88 billion bond from the plaintiffs to cover anticipated losses during the litigation. Another deadline arrives October 1, when Paramount will begin paying a roughly $7.2 million daily “ticking fee” that could reach $635 million for a full quarter.
The potential economic consequences of leaving California could be significant. A Los Angeles County Economic Development Corporation report estimated that a complete relocation could eventually result in the permanent loss of approximately 28,990 to 57,980 full-time jobs statewide and between $10.6 billion and $21.2 billion in annual economic output.
Paramount has maintained one commitment that could benefit California. The combined studios are expected to release at least thirty theatrical films annually, which the county estimates could generate between 1,020 and 2,760 job-years in the state over three years.
For now, Paramount has not formally announced a move. With settlement discussions approaching and major financial deadlines ahead, the company’s future in California has become another part of the ongoing merger battle.
