Paramount CEO David Ellison has indicated a potential move of the studio's headquarters out of California if Attorney General Rob Bonta does not engage in negotiations regarding an ongoing antitrust lawsuit. The lawsuit, which involves a $111 billion merger with Warner Bros. Discovery, is being led by Bonta and 11 other states. Ellison is reportedly considering relocating to states such as Georgia, Tennessee, or Texas if a settlement is not reached by October 1. He is facing significant financial penalties if the merger remains unresolved, with estimates of up to $650 million quarterly payments to Warner Bros. Discovery if the case is not settled before the scheduled trial in March 2027.
Bonta has criticized Paramount's actions, accusing the studio of attempting to exert pressure on the state. He reiterated his commitment to blocking the merger, citing concerns over its potential impact on prices and content quality for consumers. The lawsuit claims the merger violates antitrust laws aimed at preventing monopolistic practices.
While Bonta has expressed a willingness to negotiate, he emphasized that any discussions would require structural changes from Paramount. The merger's timeline has now been pushed back to at least June 2027, following a court ruling to delay proceedings. Additionally, Bonta faces scrutiny over potential conflicts of interest related to campaign contributions from individuals connected to Netflix, which previously sought to acquire Warner Bros. Discovery before Paramount's bid.