Leaked Report Details Fallout if Paramount Exits California

Key Points:

• A leaked report from the Los Angeles Economic Development Corporation, commissioned by Paramount, warns that the Paramount Skydance–Warner Bros. Discovery merger could cause California to lose up to 58,000 jobs and $21 billion annually in economic output if the merger is blocked by state attorneys general on antitrust grounds.
• Paramount is threatening to relocate its operations to states like Georgia, Tennessee, or Texas if the merger is not approved, a move that could permanently strip California of critical film industry infrastructure and related economic activity.
• The report estimates that while Paramount’s post-merger commitment to produce 30 features annually in California would create some jobs and economic output, these gains would be far outweighed by the broader losses across all industries tied to the film sector and its supply chains.
• Legal proceedings are ongoing with a key hearing scheduled for September 24 regarding Paramount’s $1.88 billion bond request, and if no settlement is reached, the merger dispute is headed for trial in March 2027.
• California, as the world’s fourth-largest economy, faces significant fiscal risks if Paramount substantially or entirely relocates, including major declines in tax revenues and economic output.