Report Estimates Major Job and Revenue Losses if Paramount Skydance Relocates from California

A leaked analysis from the Los Angeles Economic Development Corporation warns that relocating Paramount Skydance’s headquarters and operations out of California could result in significant job and revenue losses. The report, obtained by Politico, estimates that a partial move would eliminate between 2,750 and 5,550 job-years and reduce economic output by $1.01 billion to $2.03 billion over a five-year period ending September 30, 2031.

If the company completes a full relocation, the study projects a permanent loss of roughly 28,990 to 57,980 full-time positions across all industries and a decline in annual economic output ranging from $10.6 billion to $21.2 billion.

The potential move follows statements by Paramount Skydance owner David Ellison that the company may leave the state unless California Attorney General Rob Bonta and a coalition of other state attorneys general settle a lawsuit aimed at blocking a $111 billion merger with Warner Bros. Discovery. Ellison set an October 1 deadline, after which the company could begin relocating to states such as Georgia, Texas or Tennessee.

Paramount Skydance would also incur a daily “ticking fee” of $7 million to Warner Bros. Discovery shareholders starting October 1 until the merger closes, and a trial between the company and the attorneys general is scheduled for March 2. Representatives for Paramount declined to comment on the report.