LOS ANGELES (Diya TV) — Paramount is considering moving its headquarters and some operations out of California as the company battles a multistate lawsuit challenging its proposed $110 billion acquisition of Warner Bros. Discovery.
Paramount has informed the offices of Los Angeles Mayor Karen Bass and California Attorney General Rob Bonta that it is preparing for a possible departure from the state, TheWrap reported Wednesday. The company declined to comment publicly on the plans.
CEO David Ellison previously told senior executives that Paramount could begin moving operations out of California on Oct. 1 if the company fails to make progress toward resolving the antitrust case. Paramount has considered Georgia, Tennessee and Texas as possible alternatives, according to published reports.
California leads a coalition of 12 state attorneys general seeking to block the Warner Bros. Discovery acquisition. The states argue that the deal would reduce competition in film distribution and cable television. The Writers Guild of America has filed a separate challenge. Paramount disputes those claims.
The companies have agreed not to complete the merger until five days after the court rules on the states’ case or June 1, 2027, whichever comes first. A trial is scheduled for March 2027.
Paramount says it must begin paying Warner Bros. Discovery shareholders a $7 million daily fee if the transaction remains incomplete after Sept. 30. The company has asked the court to require the states to post a $1.88 billion bond to cover potential losses from delays. The Justice Department backed that request in a court filing this week.
A preliminary economic analysis prepared by the Los Angeles County Economic Development Corporation estimated that an initial relocation could cost California 2,750 to 5,550 job-years and between $1.01 billion and $2.03 billion in economic output through September 2031. Paramount paid for the analysis.
The report estimated that a full relocation of Paramount’s headquarters and other operations could eventually result in 28,990 to 57,980 fewer full-time jobs statewide and $10.6 billion to $21.2 billion in lost annual economic output. Those figures represent economic modeling rather than confirmed losses.
Bass’ office said the mayor remains focused on protecting entertainment jobs in Los Angeles. Bonta has said Paramount’s decision about where to operate would not change the state’s antitrust case.
