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Paramount Leaving California Will Devastate Los Angeles Economy
Variety • • general
Key Points:
- A leaked report from the Los Angeles Economic Development Corporation warns that if David Ellison relocates Paramount Skydance out of California, the state could lose between 2,750 and 5,550 job-years and $1.01 billion to $2.03 billion in economic output from 2026 to 2031.
- The report further predicts a permanent loss of 28,990 to 57,980 full-time jobs statewide and $10.6 billion to $21.2 billion annually in economic output if the full relocation occurs.
- Ellison has threatened to move Paramount Skydance out of California unless state attorneys general, led by California AG Rob Bonta, settle their lawsuit blocking the $111 billion merger between Paramount Skydance and Warner Bros.
- The company is considering relocating to states like Georgia, Texas, or Tennessee if no agreement is reached by October 1.
- Starting October 1, Paramount Skydance will owe Warner Bros. Discovery shareholders $7 million daily until the merger closes, potentially costing about $1.3 billion if the trial set for March 2 proceeds without settlement.
