Paramount Weighs California Exit as Warner Bros. Fight Deepens
Paramount could begin shifting operations out of California if its dispute with state officials over the proposed Warner Bros. Discovery acquisition remains unresolved, adding a new dimension to one of Hollywood’s biggest corporate battles.
Paramount chairman and CEO David Ellison told company leadership that the studio could start moving parts of its operations out of California from October 1, according to reports published Tuesday by Variety and Axios. No final relocation decision has been announced.
The reported warning comes as California Attorney General Rob Bonta and 11 other state attorneys general seek to block Paramount’s acquisition of Warner Bros. Discovery on competition grounds. California argues that combining the companies could reduce competition in theatrical film distribution and television.
Paramount disputes that assessment. The company has argued that bringing the businesses together would create a stronger competitor to major global streaming and technology companies. The U.S. Department of Justice completed its own investigation in June and concluded that the transaction was unlikely to harm competition, although the states are pursuing their challenge separately.
The deal would bring Paramount Pictures, CBS and Paramount+ together with Warner Bros., HBO, CNN and other Warner Bros. Discovery properties. Paramount’s agreement values WBD’s equity at roughly $80.9 billion, while the overall transaction has been widely described at around $110 billion when debt is included.
The legal delay is also becoming expensive. Paramount’s filings show that additional payments to Warner Bros. Discovery shareholders begin accruing if the merger remains unfinished after September 30.
The reported possibility of leaving California is particularly significant because Paramount Pictures has been part of Hollywood for more than a century. A full departure has been confirmed, and it remains unclear how much of the studio’s production infrastructure could realistically be moved.
