Paramount CEO Threatens California Exit Over Merger Fight

Paramount Skydance CEO David Ellison is threatening to relocate the company's operations out of California due to ongoing legal challenges over its proposed $110 billion merger with Warner Bros. Discovery, according to reports from multiple outlets. The move comes as California Attorney General Rob Bonta leads a coalition of 12 states in an antitrust lawsuit aiming to block the deal.

The potential relocation, which could happen as early as October, is seen by some analysts as an attempt to pressure California into settling the lawsuit. Ellison has reportedly told Paramount's senior executives that he would begin moving the company out of California if Bonta does not agree to settlement talks. The states involved in the lawsuit include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.

Ellison has indicated that Paramount is considering Tennessee, Texas or Georgia as potential new locations for its headquarters. These states are not part of the ongoing antitrust lawsuit. The merger has been steeped in controversy since it was first announced in late 2025. Critics argue that combining Warner Bros Discovery and Paramount would create a monopoly, stifling competition and leading to job losses.

The legal battle over the merger is expected to have significant implications for Hollywood and the broader media industry. If the deal goes through, it could result in substantial job cuts and reduced opportunities for important stories to be told. The Writers Guild of America (WGA) has also filed a lawsuit arguing that the merger would mean fewer jobs and less favorable working terms for writers.

The Directors Guild of America (DGA) and the International Alliance of Theatrical Stage Employees (IATSE), representing a combined 200,000 union members, have called on Ellison and Bonta to settle their antitrust fight. They cited concerns about productions being put on hold or canceled, leading to further reductions in available work for industry workers. The unions proposed nine conditions for any settlement, including maintaining operations in Hollywood and committing to produce films and TV shows in the U.S.

The unions also want Paramount and Warner Bros. studios to release 15 films into theaters a year each, with a 45-day theatrical window. They requested that the motion picture units be kept as separate studios and that HBO remain available on third-party platforms. Bonta's office reiterated its commitment to enforcing antitrust law, stating that the merger would mean higher costs, less competition, lower wages, job cuts, and fewer movies and TV shows.