Paramount Pictures Considers Relocating Headquarters Amid Antitrust Lawsuit Over Warner Bros. Merger

Paramount Pictures has told Los Angeles Mayor Karen Bass and California Attorney General Rob Bonta that it is "deadly serious" about relocating its headquarters and operations out of California, sources familiar with the matter said. The discussion comes as the company battles a lawsuit filed by a dozen state attorneys general and the Writers Guild of America seeking to block its $111 billion merger with Warner Bros. Discovery.

The mayor’s office said it will continue to fight to keep Paramount in Los Angeles, citing the importance of entertainment-industry jobs to the city’s economy. The attorney general’s office declined to comment on the company’s plans, noting that Paramount’s decision is its own and that the state will enforce the law without favoritism.

Paramount has not responded to requests for comment on the relocation plans. Analysts note that the merger is delayed by a trial scheduled for March 2027 and by a $7 million-per-day fee that would begin on Oct. 1 if the deal is not completed, potentially costing the company hundreds of millions of dollars.

A September report from the Los Angeles County Economic Development Corporation estimated that a full relocation could eliminate between 2,750 and 5,550 job-years in California and reduce economic output by $1.0 billion to $2.0 billion through 2031. The report also projected that, if the merger proceeds, Paramount’s commitment to produce 30 films per year could generate 1,020 to 2,760 job-years and $378 million to $1.0 billion in economic output over the same period.

The potential move, which could see Paramount shift to a state such as Tennessee, is unlikely to affect the immediate progress of the antitrust case, but it adds pressure on state officials as the legal and financial stakes remain high.