An antitrust battle over a proposed merger of Paramount Skydance with Warner Brothers has Paramount’s CEO David Ellison threatening to move the studio out of the state of California.
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The Daily Caller reports the Hollywood giant is weighing moving its operations out of California while the state’s Democratic attorney general leads a lawsuit seeking to block its acquisition of Warner Bros. Discovery.
The California Attorney General Rob Bonta, backed by 11 other state attorneys general and the Writers Guild of America, filed a lawsuit to block the deal on antitrust grounds, according to The Wrap.
According to TMZ, officials within the Los Angeles Mayor’s office and California Attorney General’s office say Paramount has threatened to leave California and move its operation to another state, if the matter isn’t settled by Oct 1.
🚨 EXCLUSIVE: Paramount to leave California, according to the L.A. Mayor’s office and the California Attorney General’s office.
What we know: https://t.co/X3Qv5CAVDL pic.twitter.com/1vWZS5AXVb
— TMZ (@TMZ) September 16, 2026
Politico reports that Paramount representatives have reportedly contacted at least two real estate developers about potentially constructing new offices in Nashville, Tennessee.
No existing Nashville building holds enough available space matching Paramount’s reported needs and timeline as of now but Tennessee Gov. Bill Lee publicly courted the company in July, saying the state would welcome Paramount, according to The Daily Caller.
Texas and George have also been mentioned as potential places for the studio to relocate if Ellison’s ultimatum of a settlement by Oct 1 is not reached, TMZ reports.
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A leaked internal report warns that if Paramount follows through on the move, the impact on California’s economy could include the loss of up to 58,000 jobs, a $21 billion hit to economic output, and a reduction of up to $1.17 billion in annual state tax revenue, according to Yahoo Finance.
The Daily Caller reports that Paramount’s departure would be another blow to the state’s already shrinking entertainment industry.
According to the Los Angeles Times, the region shed roughly 57,000 entertainment jobs over the past four years, while more than 80 film and television production service businesses have closed since 2022.
While many media outlets have expected an imminent announcement of the studio’s relocation, updates via The Hollywood Reporter appear to confirm that Paramount, the California AG, and the Writers Guild have agreed to return to the table for settlement talks.
The threatened move underscores how California’s current regulatory climate is becoming intolerable despite Governor Newsom’s claims that the state would continue to be the entertainment capital of the world for decades to come.
Paramount is moving out of California
That’ll cost the state up to $21 billion in lost economic output yearly and up to 58,000+ California jobs
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This did NOT age well… pic.twitter.com/j5NhNGglzS
— End Wokeness (@EndWokeness) September 17, 2026
