Paramount CEO Threatens California Exit Over Merger Lawsuit

Paramount CEO David Ellison has threatened to relocate company operations from California to states such as Georgia, Tennessee, or Texas if a settlement is not reached in an antitrust lawsuit blocking the studio's $111 billion acquisition of Warner Bros. Discovery. Ellison stated the move could begin as early as October 1, a deadline coinciding with a ticking fee of approximately $650 million per quarter that Paramount must pay Warner Bros. shareholders due to closing delays.

California Attorney General Rob Bonta, who leads a 12-state coalition opposing the deal, characterized the relocation threat as blackmail intended to force the approval of an illegal deal. Bonta stated that behavioral promises are insufficient and that he will only consider a settlement involving robust structural remedies. The Writers Guild of America also condemned the threat, arguing it proves the danger of the company's outsized power over the creative community.

Parallel to the legal battle, Representative Jamie Raskin of the House Judiciary Committee demanded a transcribed interview with Ellison, accusing him of colluding with the Trump administration to curtail media independence at CNN and CBS News. Paramount Chief Legal Officer Makan Delrahim denied these allegations of corruption. While Governor Gavin Newsom and some movie theater chains have reportedly signaled support for the merger, a trial is currently scheduled for March unless a settlement is reached.