Paramount's CEO says he'll move the company out of California entirely if the state won't negotiate
$500 million a year in tax savings is on the table. So is a $7 million-a-day penalty starting October 1.
David Ellison, CEO of Paramount Skydance, told executives he'll relocate the company out of California starting in October unless state Attorney General Rob Bonta agrees to settlement talks over California's antitrust lawsuit challenging Paramount's $110 billion Warner Bros. Discovery acquisition. The Paramount board has approved the move. Bonta responded by publicly calling the threat "blackmail" that "won't work." Ellison's deadline is October 1, when a $7 million-per-day fee tied to the merger agreement kicks in.
This isn't an idle threat with a real number attached. Relocating out of California could save Paramount roughly $500 million a year in taxes, plus potentially another $4 billion from selling its studio lots, real financial upside on top of escaping the lawsuit's home turf. The trial date for the state's case was just set for March, which is likely what pushed Ellison to escalate now rather than wait it out. Naming Tennessee, Texas, and Georgia as options makes clear this isn't posturing, those are real relocation packages being discussed.
Watch whether Bonta actually comes to the table before October 1, or whether Paramount follows through on a genuine corporate exodus from the state, which would be a significant loss for California's entertainment industry regardless of how the antitrust case turns out.