Paramount execs are ‘deadly serious’ about threats to leave California as the company appears unable to reach an agreement with the state over its pending billion dollar merger.
David Ellison, CEO of the iconic movie studio, threatened to ditch their Hollywood home of around 100 years if state officials didn’t abandon their anti-trust suit attempting to block the company’s merger with Warner Bros Discovery.
Sources within Paramount told Deadline that the company was ‘deadly serious’ over its threats to leave.
The studios plan to move out appeared to take a more concrete form on Wednesday, as Ellison’s deadline to reach an agreement by October 1 rapidly approaches.
Los Angeles Mayor Karen Bass and state Attorney General Rob Bonta were among those informed that a deposit had already been put down on moving trucks, Deadline reported.
Bass and the attorney general told TMZ that Paramount was preparing to announce their departure yesterday – but the announcement never occurred.
Paramount’s fight with the state comes after Bonta and 11 other state attorneys general filed an anti-trust lawsuit opposing the movie studio’s $110 billion merger with Warner Bros. Bonta slammed the studio for threatening ‘blackmail’ in an attempt to sway the public in favor of the merger over the past few months, Deadline reported.
Paramount’s departure from Hollywood would cause a devastating economic blow to the state, leaving thousands without jobs.
Sources within Paramount said the company was ‘deadly serious’ over its threats to leave Hollywood, risking a devastating economic blow to the state and leaving thousands without jobs
David Ellison, the iconic movie studio’s CEO, threatened to abandon their Hollywood home of around 100 years if state official’s didn’t abandon their anti-trust suit attempting to block the company’s merger with Warner Bros Discovery
Los Angeles Mayor Karen Bass and state Attorney General Rob Bonta were among those informed that a deposit had already been put down on moving trucks, sources said
A report by the Los Angeles County Economic Development Corp’s Institute for Applied Economics obtained by Politico found that Paramount’s move could result in the loss of 28,990 to 57,9880 full-time jobs.
The state is also at risk of losing between $10.6 billion and $21.2 billion in annual economic output. State and local tax revenue may also drop by around $585 million to $1.17 billion per year.
While Bonta told the outlet they would not comment on Paramount’s plans, he said: ‘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.
The Daily Mail reached out to Mayor Bass’s Office, Attorney General Bonta and Paramount for comment.
