David Ellison Threatens to Move Paramount Out of California if State AGs Won’t Negotiate

David Ellison, CEO of Paramount Skydance, is warning that he will relocate the company out of California if state Attorney General Rob Bonta does not negotiate a settlement before Oct. 1 regarding the Warner Bros. Discovery merger. Ellison met with his 12-member executive leadership team in a sit-down discussion at the Paramount lot, asserting that his priority is to maintain the company's 30,000 jobs in Southern California.

However, should Bonta refuse to negotiate by the time the company's daily $7 million fee begins, Ellison has vowed to move Paramount or the combined Paramount-Warner Brothers entity to another state, with Tennessee, Texas, and Georgia among the potential destinations. Ellison's Oracle Corporation is currently relocating to Nashville, Tennessee.

This move would have a significant impact on California, as it would entail selling the Paramount lot, relocating executives and business functions elsewhere, while retaining a presence in the state. The threat comes amid the ongoing antitrust case against the Warner Bros. Discovery acquisition, with a trial date set for March, delaying the resolution of the case until next summer or later.

Ellison has secured the support of two major theater chains to reassure that the 30 films per year in theaters under the combined Paramount-Warner Bros. plan will be met. Still, the CEO remains confident about the $110 billion Paramount-Warner deal's completion. Should the 12 state AGs who filed the lawsuit prevent the merger, Paramount will instead have to pay a $7 billion termination fee to Warner Bros. Discovery.