Hollywood-Deal: Medien: Paramount stellt Weichen für Wegzug aus Kalifornien

The entertainment conglomerate Paramount appears to be preparing to relocate from California, according to media reports. The driving force behind this move is a legal challenge initiated by California and other Democratic-led states against the planned acquisition of their rival, Warner Brothers. The Paramount board of directors approved the commencement of this venture as of October 1st, according to the website "Puck" and financial service Bloomberg, citing informed sources.

Paramount had not officially commented on the matter until now. Sources suggest that Paramount CEO David Ellison proposed a five-year plan, which would relocate the majority of jobs in the film and TV industry to a new location. If the Warner acquisition succeeds, Paramount may also be considering selling a studio lot in Hollywood.

Potential new homes being considered include the states of Tennessee, Georgia, and Texas, all of which have a strong Republican presence led by President Donald Trump. Several major companies based in California, such as the car company Tesla, run by tech-billionaire Elon Musk, have also moved their headquarters to these Republican-leaning states in recent years.

These states promise companies a freer hand and lower tax burdens. The ongoing legal challenge was filed by California and other Democratic-led states, with California Attorney General Rob Bonta alleging an extortion attempt. The states argue that the merger would distort competition among popular films and thereby pressure cinemas.

A federal judge had previously set the competition lawsuits by the US states and the Screenwriters' union for early March of the following year. For Paramount, this delay adds to the already massive $11.1 billion (about €96 billion) deal, with Paramount executives promising additional payments of around $650 million per quarter to Warner shareholders if the acquisition does not close by the end of September.

This is very likely to mean that Paramount will have to pay at least $1.3 billion more. Paramount is also running out of time. The companies set a deadline of June 4th, 2027, to finalize the acquisition. If that deadline passes, Warner Brothers could cancel the deal and impose a $7 billion contractual penalty on Paramount, while it could also extend the deadline. Paramount put the Warner takeover on hold for now after the legal challenges.