Paramount CEO may remove operations from California over stalled merger

What the report says

Paramount CEO David Ellison is reported to be considering moving some company operations out of California if the state does not enter settlement talks over the planned merger with Warner Bros Discovery. According to Al Jazeera’s report, the warning was first circulated by Variety and would mark a sharp escalation in the dispute over the proposed media consolidation. Al Jazeera said it could not independently verify the claim.

The conflict centers on an antitrust lawsuit filed by a coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, to block the deal. Bonta has argued that combining the two companies could reduce competition in film, television and cable programming. The report says the states warn the merger could give the combined company major market share in U.S. entertainment distribution and raise concerns about job losses and fewer opportunities for creators.

Al Jazeera reported that Paramount has already agreed to pause the merger until the legal fight is resolved or until mid-2027, but that delay carries significant financial penalties if the deal does not close by late September. The report also said Ellison may be willing to consider relocating to states such as Tennessee, Texas or Georgia. If carried out, such a move could have broader implications for California’s film economy and for the ongoing battle over the future of Hollywood media consolidation.