Paramount CEO Threatens California Exit Over Merger Lawsuit

Paramount Skydance CEO David Ellison has threatened to relocate company operations from California to Tennessee, Texas, or Georgia by October 1 if Attorney General Rob Bonta refuses to settle an antitrust lawsuit. Bonta, leading a 12-state coalition and the Writers Guild of America, characterized the threat as "blackmail" intended to force the approval of an "illegal deal" regarding Paramount's $110 billion acquisition of Warner Bros. Discovery.

The merger is currently frozen pending a trial scheduled for March 2027, though Paramount is pushing for a November 2026 date. The delay carries severe financial risks: Paramount faces a $7 billion breakup fee if the deal collapses and a "ticking fee" of approximately $650 million per quarter starting September 30, which is being backstopped by Larry Ellison.

While the Writers Guild of America supports blocking the merger to prevent outsized industry power, the Directors Guild of America and IATSE have urged a settlement to end industry uncertainty. These unions proposed conditions such as keeping Paramount in Los Angeles and guaranteeing a minimum number of annual theatrical films.

Simultaneously, Representative Jamie Raskin of the House Judiciary Committee has demanded an interview with Ellison over allegations of collusion with the Trump administration to consolidate media power and suppress dissent. Paramount Chief Legal Officer Makan Delrahim has denied these corruption claims, asserting the company remains transparent.