David Ellison To Move Paramount Out Of California If No Settlement Talks
Deadline • • entertainment
Key Points:
- Paramount CEO David Ellison warned top executives that the company may begin exiting California on October 1 if Attorney General Rob Bonta does not negotiate a settlement over the antitrust suit concerning the merger with Warner Bros. Discovery.
- AG Bonta strongly rejected Paramount's stance, accusing the company of attempting to "blackmail" the state into approving what he calls an illegal deal, and reaffirmed that the lawsuit will proceed to trial in March 2027.
- The merger, valued at $111 billion, has received approval from the DOJ and international regulators but faces opposition from a coalition of 20 state AGs focusing on antitrust concerns in film release practices and cable programming.
- Ellison expressed reluctance to relocate but cited feeling unwelcome in California amid the escalating legal and PR battle; potential relocation states include Tennessee, Texas, and Georgia, which may offer incentives.
- Industry analysts note that Paramount's recent public relations efforts may be strengthening the AG's position rather than fostering settlement, and that proceeding to trial risks collapse of the merger and a $7 billion breakup fee.
