Paramount Skydance CEO threatens move out of California amid merger legal battles

David Ellison, chief executive of Paramount Skydance, has suggested the possibility of moving the company out of California to states such as Tennessee, Georgia, or Texas. The threat comes amid an antitrust lawsuit filed by California Attorney General Rob Bonta and 11 other Democratic state attorneys general seeking to block the merger between Paramount and Warner Bros. Discovery.

A judge has ruled that a trial regarding the merger will begin in March. Under the current terms of the deal, Paramount is required to pay Warner shareholders a “ticking fee” of $7 million per day starting October 1. Moving the company could potentially save an estimated $500 million annually in state taxes, and the studio lots themselves are valued between $4 billion and $5 billion each.

The prospect of relocation has caused significant concern within the entertainment industry. Actor Noah Wyle expressed hope that the comments are merely “saber rattling,” noting that removing the industry from its traditional home would damage its relationship with the local population. Industry observers note that the move would impact production jobs and the regional economy, which relies heavily on film and television activity.