David Ellison Threatens To Move Paramount Out of California Over Antitrust Lawsuit
The executive warns of an October 1 exit from the Golden State if a settlement in the Paramount-Warner Bros. Discovery merger isn’t reached.
Summary
Paramount Skydance CEO David Ellison informed executives that the company will begin relocating operations out of California on October 1 unless an antitrust suit is settled
California Attorney General Rob Bonta criticized the relocation threat as an attempt to blackmail the state into approving the Warner Bros. Discovery merger
The proposed move aims to offset ticking fees of $7 million USD per day payable to WBD shareholders starting in October if the deal remains stalled
Paramount executive David Ellison is preparing to begin moving company operations out of California on October 1, 2026, if the state refuses to negotiate a settlement in an antitrust lawsuit blocking the Paramount-Warner Bros. Discovery merger. Ellison confirmed the contingency plan to senior leadership following approval from the Paramount Skydance board.
The relocation strategy comes as Paramount faces a ticking fee payable to Warner Bros. Discovery shareholders starting October 1, accruing $7 million per day until the transaction closes. With the state attorneys general lawsuit scheduled for trial on March 2, 2027, prolonged litigation could cost Paramount upwards of $1.2 billion. While Ellison expressed confidence that the company will prevail in court, relocating the Los Angeles headquarters and studio operations to states like Georgia, Texas, or Tennessee is designed to curb long-term operating costs.
In response to the announcement, California Attorney General Rob Bonta publicly condemned the strategy, characterizing the potential exit as an attempt to blackmail the state into permitting an illegal deal. Bonta maintained that any acceptable remedies to dismiss the lawsuit would require structural divestments rather than behavioral promises.
If no settlement is reached between Paramount and the state, the media entity will initiate its multi-year plan to transition operations out of California starting October 1, 2026.
