Paramount Signals California Exit If Antitrust Settlement Falls Short

Paramount chief David Ellison told top executives that if California AG Rob Bonta won’t negotiate a settlement in the antitrust lawsuit blocking the Paramount-Warner Bros. Discovery merger, Paramount will begin relocating operations out of California on Oct. 1, starting with the LA headquarters and eventually moving most studio jobs. The move is tied to looming ticking fees—the company would owe Warner Bros. Discovery about $7 million per day from Oct. 1 until closing—potentially around $1.2 billion by the March 2027 trial. Paramount Skydance has approved the relocation, with Georgia, Texas and Tennessee among potential new homes. California’s Bonta characterized Ellison’s threat as blackmail and said any settlement would need to be structural rather than behavioral.