David Ellison Says He’ll Pull Paramount Out of California Starting Oct. 1 if States Refuse to Negotiate Settlement in Antitrust Suit

Key Points:

• David Ellison plans to relocate Paramount's operations out of California starting October 1 if the Paramount-Warner Bros. Discovery merger is not resolved through a settlement with California Attorney General Rob Bonta by September 30, aiming to pressure the state amid ongoing antitrust litigation.
• The move follows the states' antitrust lawsuit blocking the merger, with Ellison citing the need to cut costs due to a $7 million daily "ticking fee" payable to Warner Bros. Discovery shareholders starting October 1 until the deal closes, which could total about $1.2 billion by the trial's conclusion in mid-2027.
• California AG Rob Bonta condemned Ellison's threat as an "attempt to blackmail the state" and emphasized that any acceptable settlement would require structural remedies like divestments, not behavioral conditions.
• Paramount's relocation would begin with its Los Angeles headquarters, potentially shifting most studio jobs out of California over five years, with possible new locations including Georgia, Texas, or Tennessee; this sudden plan has raised concerns about employee retention amid looming layoffs.
• The merger, backed financially by Larry Ellison and Middle Eastern sovereign wealth funds, faces significant regulatory hurdles, and if completed, is expected to result in substantial job cuts to streamline the combined company's operations.