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[BUSINESS] · United States · 69 sources

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Paramount threatens California relocation over Warner Bros. merger lawsuit

Paramount CEO David Ellison has threatened to relocate the studio's operations out of California if state attorneys general do not reach a settlement regarding the company's proposed $110 billion merger with Warner Bros. Discovery. The threat, which Ellison reportedly presented to executives, includes a five-year plan to move the majority of film and TV jobs to states such as Tennessee, Texas, or Georgia. Relocating could potentially save the company approximately $500 million annually in taxes.

California Attorney General Rob Bonta, leading a coalition of 12 states, has criticized the move as an attempt to ‘blackmail’ the state into approving a deal they argue violates antitrust laws by creating a media behemoth. The legal challenge focuses on competition in theatrical distribution and cable licensing.

Paramount faces significant financial pressure due to the ongoing litigation. If the merger is not finalized by the September 30 deadline, the company faces a $7 million daily penalty. An antitrust trial related to the merger is currently scheduled to begin in March 2027. To resolve regulatory concerns, Paramount has indicated that various options remain ‘on the table,’ including the potential sale of CNN and the creation of an independent board to oversee CBS News and CNN to ensure journalistic integrity.

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California · David Ellison · Paramount · Rob Bonta · Warner Bros. Discovery

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News That Will Drive You To Drink [mockpaperscissors.com]