Paramount CEO David Ellison has reportedly warned that he would initiate a relocation of the company's operations out of California if state Attorney General Rob Bonta does not agree to settlement discussions by October 1, according to a report by Variety published Tuesday. Al Jazeera was unable to independently confirm the report.
Paramount CEO reportedly threatens California relocation over merger lawsuit
Paramount CEO David Ellison has reportedly warned that he would initiate a relocation of the company's operations out of California if state Attorney General Rob Bonta does not agree to settlement discussions by October 1, according to a report by Variety published Tuesday. Al Jazeera was unable to independently confirm the report.
In July, Bonta announced he was leading a coalition of 12 state attorneys general in an antitrust lawsuit seeking to block a proposed $110 billion merger between Paramount and Warner Bros Discovery. Bonta stated that the combined company would control 27 percent of theatrically released films in the United States and approximately one-third of the country's basic-cable output.
Variety reported that Ellison told Paramount's senior executives he would begin relocating the company on October 1 if settlement talks do not commence. The report also alleged that Ellison would pull Warner Bros Discovery out of California as well if the merger is completed. Paramount is reportedly considering relocating to Tennessee, Texas, or Georgia, none of which are parties to the antitrust lawsuit.
One day after the 12 states filed their lawsuit, the Writers Guild of America filed its own complaint on July 14, arguing the merger would reduce employment opportunities for writers and increase pressure on them to accept less favorable working terms. An analysis by the Los Angeles County Department of Economic Opportunity, published in June, estimated that the merger could result in the loss of nearly 2,500 jobs in Los Angeles County alone, with as many as 6,000 positions potentially cut worldwide.
As of the end of 2025, Paramount employed 17,600 people and Warner Bros Discovery employed 35,500. By comparison, approximately 2,000 people were laid off following the completion of the Paramount and Skydance merger in 2025.
On July 24, Paramount Skydance agreed to pause the merger pending a ruling in the states' case or until June 1, 2027. Under the merger's terms, the company would incur a fee of $7 million per day, or $650 million per quarter, if the deal does not close by September 30.
The proposed Warner Bros Discovery merger follows Paramount's earlier consolidation with media production company Skydance in 2025. That deal drew scrutiny over editorial independence, and Paramount's decisions that year to cancel The Late Show with Stephen Colbert and reach a $16 million settlement with President Donald Trump were widely characterized as efforts to secure government approval for the transaction.
Last week, Ellison published an opinion column in The New York Times in which he questioned whether the antitrust lawsuit was about market share, suggested it may be about control over major news outlets such as CNN, and described himself as politically independent.
The states have argued that if the merger succeeds, four distributors would control 86 percent of films distributed in the United States. Paramount Skydance's stock was up 0.4 percent in midday trading following Tuesday's report, while Warner Bros Discovery's stock was up 1.1 percent.
- Whether Ellison made the relocation threat directly or through intermediaries is not established
- The source or sources within Paramount who provided the information to Variety are not identified
- Whether any formal relocation plans or site assessments have been initiated is not confirmed
- California's official response to the reported relocation threat is not provided
- The legal basis or likelihood of success for the states' antitrust case is not assessed
- Whether Warner Bros Discovery leadership has been consulted about or consented to a potential relocation is not established
- The timeline or mechanism by which a relocation would occur is not specified
Read the original at Al Jazeera English