Paramount Sets California Exit Plans Over Antitrust Battle With Blue States & Stymied $111B WBD Merger

Paramount is preparing to leave California in response to a legal battle over its $110 billion merger with Warner Bros. Discovery, according to messages sent to Los Angeles Mayor Karen Bass and California Attorney General Rob Bonta. Bass's office stated that she is committed to protecting jobs in the entertainment industry and will continue to fight for LA's position as Hollywood's home.

Bonta's office declined to comment on the matter but noted that Paramount has been making the threat despite its purported commitment to California. The economic impact of Paramount's departure, if it occurs, could be significant, with estimates ranging from $21.2 billion in annual economic output loss to 57,980 full-time job losses and $1.17 billion in state and local tax revenue.

The merger itself could put up to 4,500 local TV and film jobs at risk over the next three years, leading to an estimated $1.26 billion in wages and $4.06 billion in total business output. If Paramount relocates, Nashville, Atlanta, and Texas are among the potential destinations, with Tennessee reportedly offering an attractive business climate.

The merger is currently slated to close by June 4, 2027, but the deal has faced opposition from state attorneys general, the Writers Guild of America, and various Hollywood unions. A trial over the matter is scheduled to begin in March, with a potential settlement deadline of October 1.