Tennessee courts Paramount Skydance amid California corporate exodus
Tennessee's deputy governor invited Paramount Skydance to relocate its headquarters, highlighting the state's tax incentives and logistics as the film studio faces a legal dispute in California.
Tennessee Deputy Governor Stuart McWhorter sent a letter to Paramount Skydance chief executive David Ellison on July 2, proposing that the studio move its Hollywood headquarters to the Volunteer State. The outreach comes as Paramount Skydance contends with California Attorney General Rob Bonta, who has assembled a group of state attorneys general to challenge the company's $111 billion acquisition of Warner Bros. Discovery.
McWhorter wrote that Tennessee offers a “compelling proposition” where “creativity and technology converge” and expressed interest in helping shape the studio’s future. The invitation follows a broader trend of companies leaving California for states with lower taxes and fewer regulations. Earlier this year, Texas overtook California as the state with the most Fortune 500 firms.
Other firms have already established operations in Tennessee, including Oracle, which moved its world headquarters to Nashville, and automotive manufacturers Nissan and Mitsubishi Motors, which relocated their U.S. bases to Franklin. Fast-food chains such as Carl’s Jr. and In-N-Out have also shifted corporate offices to the state.
State officials point to Tennessee’s lack of personal income and property taxes, a 7 percent sales tax, and a range of tax credits and grants as key attractions. The state’s central location, extensive highway network, multiple Class 1 rail lines and Memphis’s cargo airport are cited as logistical advantages. Governor Bill Lee said companies choose Tennessee for its workforce, strategic position and supportive business environment.