Paramount CEO threatens to relocate amid merger lawsuit and industry pressure

Paramount Pictures' chief executive David Ellison told the company's leadership that, absent a settlement on the pending antitrust case, he will begin moving the studio out of Los Angeles on Oct. 1. The threat comes as the merger with Warner Bros. Discovery remains under scrutiny by a lawsuit filed by 12 state attorneys general, with a trial set for March 2, 2027. California Attorney General Rob Bonta called the relocation threat "blackmail" and said it would not influence the legal process.

The merger, approved by regulators in the EU, UK and the U.S. Justice Department, has been opposed by several industry guilds and trade groups, who argue it could jeopardize jobs and competition. Attorney Abiel Garcia, a former deputy attorney general, said the antitrust case is solid and that Ellison's only leverage is to pressure Bonta to negotiate.

Ellison has floated potential new headquarters in Nashville, Tennessee, citing the state's 25% film-production rebate, lack of income tax and ongoing development by Oracle, his father's company. Tennessee officials welcomed the prospect, while governors in Georgia and Texas highlighted their own incentives and business climates. No formal settlement talks have begun, though both parties are participating in court-ordered mediation.

Industry reaction is mixed. Some producers expressed concern that a move would disrupt local crews and lower-line workers, while others view the threat as a negotiating tactic. The Directors Guild of America and IATSE have urged a quicker resolution to protect their members, who could face significant job losses if production shifts out of California. A recent county report estimated that the merger could eliminate thousands of film and TV jobs in the Los Angeles area over three years.

Despite the pressure, Bonta reiterated his focus on the law, stating, "I don’t care what people think, I care about the law," and affirmed the state's willingness to discuss structural remedies. The outcome of the trial and any potential settlement will shape the future of Hollywood's geographic concentration and the competitive landscape of the U.S. entertainment industry.