Paramount CEO threatens to relocate from California amid antitrust dispute

David Ellison, chief executive of Paramount, told senior staff that the company could start pulling its California assets as early as Oct. 1 unless the merger with Warner Bros. Discovery is completed by the end of September. The deadline follows a 12-state antitrust lawsuit that seeks to block the deal, with the case scheduled for trial in March 2027.

Ellison’s message appears directed at California Attorney General Rob Bonta, who has led the states’ legal challenge. Bonta described the relocation threat as "blackmail" and a representative for his office accused Paramount of attempting to pressure the states into a settlement.

Paramount has asked the court overseeing the lawsuit to require the states and the Writers Guild of America, which also sued to block the merger, to post a $1.88 billion bond. In a statement, Ellison said the company has offered commitments and remains willing to work constructively with the attorneys general to reach a solution that protects employees and the broader creative community.

If negotiations fail, the studio is reportedly considering other states such as Tennessee, Texas or Georgia as potential new locations. The move is framed as a cost-saving measure, with Ellison estimating possible tax and expense reductions of about $500 million, though tax experts note that California corporate taxes are apportioned based on customer location and would not be eliminated by a relocation.

Industry observers note that moving thousands of employees and building new production facilities would entail significant expenses, and many staff may be unwilling to leave Southern California. Some analysts argue that the geographic concentration of talent and ancillary services makes a large-scale relocation strategically risky for a Hollywood studio.

The merger remains pending regulatory approval in Mexico, while the U.S. antitrust case continues to be the final hurdle.