- Paramount has been headquartered in Hollywood for over a century.
- In February, David Ellison wrote to lawmakers pledging to stay 'true to our roots' in California.
- On July 2, Tennessee officials reached out to Ellison about relocating the corporate headquarters amid a rift with California over its $111 billion takeover of Warner Bros. Discovery.
- A coalition of 12 state attorneys general, led by Rob Bonta, moved to block the merger.
- Ellison told staffers he plans to move headquarters out of state if the antitrust suit isn't settled by Oct. 1, when a $7 million-per-day ticking fee begins.
- Texas, Georgia, or another state could be added to the list of potential relocation destinations.
- Paramount's departure would threaten thousands of LA jobs, billions of dollars in local economic activity, and a web of ancillary businesses such as caterers, prop houses, and costume vendors.
- Ellison has expressed concerns about the $7 million-per-day ticking fee that starts accruing on Oct. 1 if the merger isn't completed.
Paramount CEO David Ellison is facing a critical juncture as he contemplates moving the studio's headquarters out of California due to a legal standoff with Attorney General Rob Bonta over a $111 billion merger with Warner Bros. Discovery.123458
The merger has drawn the ire of Bonta and a coalition of 12 state attorneys general, who are attempting to block the deal, citing concerns over market competition. “Bonta needs to stop stalling, grandstanding and politicizing the deal,” critics argue, questioning the motivations behind the legal action.
As the legal battle intensifies, Ellison has indicated that if a resolution is not reached by October 1, when a $7 million-per-day penalty begins to accrue, he may relocate to states like Tennessee, Texas, or Georgia.6
“Paramount has deep roots in Southern California,” Ellison stated, emphasizing his commitment to the local workforce. However, the potential move could jeopardize thousands of jobs and billions in economic activity in Los Angeles, where approximately 17 percent of Paramount's workforce is based.
Local leaders, including Mayor Karen Bass, have urged Ellison to remain in California, highlighting the studio's historical significance and its role in supporting local jobs. “It would be a massive mistake for Paramount to leave them behind,” said local representative Friedman, stressing the importance of the creative community in Los Angeles.
“About 17% of Paramount's workforce is based in L.A., and the studio's departure would threaten thousands of jobs and billions in local economic activity. Ellison faces a $7 million-per-day ticking fee starting Oct. 1 if the merger isn't completed, prompting him to consider relocation offers from Tennessee and other states.”
The Hollywood Reporter
