Paramount officials say the company is “deadly serious” about leaving California as the October 1 deadline to reach an agreement with the state draws closer.
David Ellison, CEO of the iconic movie studio, has threatened to move Paramount from its Hollywood home of nearly 100 years unless state officials drop an antitrust lawsuit seeking to block the company’s proposed merger with Warner Bros. Discovery.
Sources inside Paramount told Deadline that the studio is “deadly serious” about its threats to relocate.
According to the outlet, Los Angeles Mayor Karen Bass and California Attorney General Rob Bonta were told that Paramount had already paid a deposit for moving trucks.
Bass and Bonta told TMZ that Paramount was prepared to announce its departure yesterday, although no announcement was ultimately made.
Paramount’s dispute with California follows an antitrust lawsuit filed by Bonta and 11 other state attorneys general, who are challenging the movie studio’s proposed $110 billion merger with Warner Bros.
Bonta has accused Paramount of using “blackmail” in an effort to influence public opinion and build support for the merger, Deadline reported.
A Paramount departure would deliver a major economic shock to California, potentially putting thousands of jobs at risk.
Sources inside Paramount said the company was “deadly serious” about its threat to leave Hollywood, a move that could cause a devastating economic blow to California and put thousands of jobs at risk.
Paramount CEO David Ellison has threatened to abandon the studio’s Hollywood home of nearly 100 years unless state officials drop their antitrust lawsuit seeking to block its merger with Warner Bros. Discovery.
Sources said Los Angeles Mayor Karen Bass and California Attorney General Rob Bonta were told that a deposit had already been paid for moving trucks.
A report from the Los Angeles County Economic Development Corporation’s Institute for Applied Economics, obtained by Politico, estimated that Paramount’s relocation could lead to the loss of 28,990 to 57,9880 full-time jobs.
California could also lose between $10.6 billion and $21.2 billion in annual economic output. State and local tax revenue could fall by approximately $585 million to $1.17 billion each year.
Bonta declined to comment on Paramount’s plans but told the outlet: “It’s no secret that Paramount has been making this threat, despite its alleged commitment to California and Hollywood.”
“What Paramount decides to do is Paramount’s choice alone. We’ll continue to apply the law without fear or favor and continue to be open to coming to the table for good faith discussions,” the attorney general added.
State GOP Chairwoman Corrin Rankin told the California Post that Bonta ‘wants to play antitrust crusader while California jobs hang in the balance.’
‘If Paramount walks and thousands of jobs go with it, he won’t get to blame Hollywood, the buck stops with him. Stop grandstanding, negotiate the protections and make a deal,’ she said.
But Bonta said that Paramount was being unreasonable during negotiations, according to TMZ.
With no deal on the table, Ellison threatened to move Paramount to Texas, Georgia or Tennessee by October 1.
Paramount’s fight with the state comes after Bonta, 11 other state attorneys general, filed an anti-trust lawsuit opposing the movie studio’s $110 billion merger with Warner Bros
A spokesperson for City Hall told Deadline that the mayor has been ‘focused on protecting and fighting for jobs in LA, including critical jobs in the entertainment industry that have been a vital part of Los Angeles’ economy’
Bonta slammed the studio for threatening ‘blackmail’ to sway the public in favor of the merger over the past few months
A spokesperson for City Hall told Deadline that the mayor has been ‘focused on protecting and fighting for jobs in LA, including critical jobs in the entertainment industry that have been a vital part of Los Angeles’ economy.’
‘She’s been engaged on this issue and will continue to fight to make sure LA is home to Hollywood,’ the mayor’s office continued.
Paramount’s exit from California joins the trove of companies seeking to relocate from the blue state.
The likes of KB Home, Chevron, Charles Schwab, Oracle, Palantir and many more have already made their exits, as well as Elon Musk’s Tesla, SpaceX and X.
All of those businesses, other than SpaceX and X which are not currently publicly traded, have market caps in the hundreds of billions of dollars, or even north of one trillion dollars in the case of Tesla.
Thiel’s decision to abandon California and move Palantir first to Colorado and then Florida came in response to last year’s ‘billionaire tax’ threat.
Charles Schwab’s departure for Texas cited the high cost of doing business in California as a major factor in their decision to leave.
Our News Outlet reached out to Mayor Bass’s Office, Attorney General Bonta and Paramount for comment.
