Paramount CEO David Ellison threatens to relocate the studio headquarters from California if the state’s attorney general, Rob Bonta, does not resolve the ongoing antitrust lawsuit. Ellison is considering states like Georgia, Tennessee, or Texas if no settlement is reached by October 1. The lawsuit aims to block Paramount’s $111 billion merger with Warner Bros. Discovery.
According to sources, Ellison is confident Paramount could win in court, but delays are costly. The antitrust trial is scheduled for March 2027, meaning Paramount may need to pay Warner Bros. Discovery a hefty fee periodically if the merger is not settled.
“This illegal merger will result in higher costs, fewer options, and fewer people making movies. My office remains committed to stopping illegal consolidation and protecting a vibrant California economy,” Bonta stated.
The lawsuit claims the merger will negatively impact film quality and prices, violating the Clayton Act’s stance against monopolistic mergers. Judge Araceli Martínez-Olguín has delayed the merger until June 2027. Bonta is accused of having a potential conflict due to political connections.
Bonta signals possible negotiations with Paramount if fair structural remedies are agreed upon. Meanwhile, past negotiations showed Warner Bros. Discovery’s interest with Netflix before Ellison’s offer was considered.
The proposed merger would represent a significant consolidation in Hollywood, encompassing major networks like CBS and CNN. Critics argue it could lead to layoffs and shifts in editorial direction. Ellison reassures that CNN would maintain independence, emphasizing news should be fact-based.
Both Paramount and Bonta’s office haven’t commented yet. Further developments are anticipated as the legal proceedings continue.