Report Estimates Up to 58,000 Jobs and $21 Billion in Economic Losses if Paramount Leaves California
A leaked analysis commissioned by Paramount projects that a relocation could eliminate as many as 58,000 full-time jobs and reduce California’s annual economic output by up to $21 billion.
A leaked study prepared by the Los Angeles Economic Development Corporation’s Institute for Applied Economics indicates that a potential exit by Paramount Pictures from California could result in the loss of between 28,990 and 57,980 full-time job-years across all sectors, and a reduction in annual economic output ranging from $10.6 billion to $21.2 billion. The analysis was commissioned by Paramount and obtained by Politico amid ongoing antitrust litigation involving the $110 billion merger of Paramount Skydance with Warner Bros. Discovery.
State attorneys general, led by California Attorney General Rob Bonta, are seeking to block the merger on antitrust grounds. The parties are negotiating under an October 1 deadline, after which a “ticking fee” would trigger a daily payment of $7 million to Warner Bros. Discovery shareholders. Paramount has indicated it could relocate production to states such as Georgia, Tennessee or Texas if the deal is halted.
The report also notes that Paramount’s post-merger commitment to produce 30 films per year for three years would generate between 1,020 and 2,760 job-years in California and between $377.7 million and $1.01 billion in economic output through September 2031. This translates to an annual contribution of 340-920 job-years and $125.9-$337.2 million in statewide output during that period.
In addition to job losses, the study warns that converting Warner Bros. soundstages to commercial or residential use would permanently remove a century-old infrastructure that supports vendors, crews and post-production facilities. California’s gross domestic product, the world’s fourth-largest, is estimated at $4.1-$4.4 trillion; a full relocation could diminish tax revenues and broader economic activity.
U.S. District Judge Araceli Martinez-Olguin has scheduled a hearing for September 24 to consider Paramount’s request for a $1.88 billion bond from 12 states and the Writers Guild of America, which is also challenging the merger. The bond is intended to secure potential losses if the transaction is delayed beyond the trial date. If negotiations fail, the case is set for a March 2027 trial.