Paramount CEO David Ellison is prepared to begin the process of leaving California on Oct. 1 unless state Attorney General Rob Bonta agrees to settlement talks. The threat follows Bonta's antitrust lawsuit seeking to block Paramount's acquisition of Warner Bros. Discovery. Paramount's top lawyer confirmed the studio is weighing relocation.
Bonta's lawsuit seeks to halt the proposed merger on antitrust grounds, arguing it would reduce competition in the entertainment industry. Ellison told top executives he would initiate the exit process unless negotiations begin. Bonta's office has said its enforcement protects consumers and market fairness.
California stands to lose a major employer and taxpayer if Paramount follows through. The entertainment industry contributes billions of dollars annually to the state's economy through jobs, production spending and tax revenue.
Paramount's legal chief said the studio would pursue alternatives, including leaving the state, if the lawsuit proceeds without a path to resolution. The Oct. 1 deadline gives Bonta a clear choice: engage in settlement discussions or allow the relocation process to begin.
While companies often threaten relocation during disputes, a major studio following through would set a notable precedent. California has long been the center of the film and television industry, and other states with more favorable regulatory environments stand to benefit from such a move.
The dispute forces a choice between aggressive antitrust enforcement and retaining a major corporate presence within state borders.
