Paramount CEO David Ellison has set October 1 as the deadline for California Attorney General Rob Bonta to engage in settlement talks regarding the $110 billion Paramount-Warner Bros. Discovery merger, or risk the company relocating its headquarters out of California. The threat follows a 12-state antitrust lawsuit filed by Bonta and other attorneys general to block the merger, which Paramount argues is illegal.
Paramount’s relocation plan would begin as early as October 1, according to reports, with the company reportedly considering Georgia, Texas, or Tennessee as potential new headquarters locations. The move would coincide with the start of a $7-million-per-day “ticking fee” payable to Warner Bros. Discovery (WBD) shareholders if the merger remains stalled. Paramount has stated that the relocation would proceed regardless of the lawsuit’s outcome, with a five-year plan to shift the majority of jobs out of California while maintaining a Hollywood presence.
Bonta has publicly dismissed Paramount’s threat, calling it an attempt at “blackmail” to force the state into settling the lawsuit. In a series of posts on X (formerly Twitter), Bonta accused Paramount of losing credibility in court and reiterated that the lawsuit is not politically motivated. “Paramount has lost the plot as it continues to lose in court,” Bonta wrote. “It didn’t work the first time — on the eve of our July lawsuit — and it won’t work this time.”
The antitrust trial is currently scheduled for March 2027, meaning Paramount could face $650 million in quarterly fees to WBD if the merger remains unresolved until then. The company has previously agreed to pause the merger until the trial or June 2027, whichever comes first, and had requested a November trial date. However, Bonta has resisted settlement talks, arguing that Paramount’s legal challenges have repeatedly failed.
Key Background:
- The 12-state lawsuit, led by Bonta and New York Attorney General Letitia James, alleges that the merger would violate antitrust laws by reducing competition in the entertainment industry.
- Paramount has denied any wrongdoing, and Ellison has framed the lawsuit as an attempt to block a business transaction that would benefit shareholders.
- The company’s potential relocation has drawn interest from officials in Georgia, Texas, and Tennessee, with Tennessee’s Deputy Governor Stuart McWhorter publicly encouraging the move.
- Critics of the lawsuit argue that the merger would not significantly alter market competition, as major streaming platforms like Netflix and Disney already dominate the industry.
Paramount has not publicly commented on its relocation plans beyond confirming that discussions are underway. The company has stated that the decision to move is driven by business considerations rather than the lawsuit itself.