David Ellison Goes Nuclear With Threat to Move Paramount Out of California — Is It a Stunt?
The Paramount CEO’s ultimatum rattled staffers, but experts are split on the viability of running a major Hollywood studio from Nashville or Atlanta The post David Ellison Goes Nuclear With Threat to Move Paramount Out of California — Is It a Stunt? appeared first on TheWrap .
David Ellison, the CEO of Warner Bros. Discovery and Paramount Pictures, has threatened to relocate the companies' headquarters out of California if Attorney General Rob Bonta does not negotiate a settlement. The announcement came during a leadership meeting where Ellison warned that if talks fail, the company will begin moving out of the state starting in October.
This move comes as the $110 billion merger between Paramount and Skydance with Warner Bros. Discovery faces an antitrust trial. Some insiders believe Ellison is merely grandstanding to pressure Bonta into negotiating, while others feel he is being serious about the threat. If he were to leave California, the company would potentially sell the Paramount and Warner Bros. lots for $4 billion to $5 billion each and relocate to a lower-tax state like Nashville or Atlanta.
However, this move would present several practical challenges, including the loss of talent, the disruption of deal-making networks, and the financial implications of selling and leasing soundstages. Bonta has dismissed Ellison's threat as "blackmail" and is confident in the lawsuit's outcome. While some experts argue Ellison's threat is not effective, others believe it could put pressure on Bonta to negotiate a settlement.
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