Paramount Threatens to Leave California Amid Warner Troubles

Journalist Matthew Belloni, from Puck, has reported an update on the sale of Warner Bros. Discovery to Paramount. The insider gained access to information from a recent meeting in which Paramount CEO David Ellison presented top executives with a plan to move the company’s headquarters to another state if the standoff with California is not resolved.

First, Ellison said that if he wins the lawsuit brought by the states, the intention would still be to keep Paramount in California, where the studio is based. However, if he is unable to reach an agreement with Rob Bonta, the state’s attorney general, the executive confirmed to the company’s other leaders that he is considering relocating the headquarters as an alternative.

During the meeting, Ellison set October 1 as the deadline for the situation to be resolved. If there is no progress by that date, the company may begin the process of moving its headquarters to another state. Tennessee, Texas, and Georgia are among the locations being considered by Paramount.

The plan would begin with moving the headquarters and could, over five years, shift part of the administrative functions and around 30,000 jobs currently concentrated in California. Even with the possible departure, the company intends to maintain a creative hub in Hollywood to preserve its relationship with artists, producers, and suppliers.

It is worth remembering that the standoff is related to the lawsuit filed by California and 11 other states against Paramount’s acquisition of Warner Bros. Discovery, valued at around $110 billion. The antitrust dispute has already pushed the trial to March 2027 and could generate additional costs for Paramount while the deal is not finalized.