David Ellison Plans to Relocate Paramount Operations if Antitrust Settlement Negotiations Fail

David Ellison, CEO of Paramount, has stated that the company will begin relocating its operations out of California starting October 1 if negotiations with the state's attorney general, Rob Bonta, regarding an antitrust lawsuit do not progress. The lawsuit, filed by 12 states, seeks to block the merger between Paramount and Warner Bros. Discovery. Ellison indicated that the relocation is necessary to cut costs, as Paramount will incur a 'ticking fee' of $7 million per day to Warner Bros. Discovery shareholders starting on October 1 until the merger closes. The trial for the antitrust case is scheduled to begin on March 2, 2027. Ellison has not disclosed where the new headquarters might be, but locations under consideration include Georgia, Texas, and Tennessee. The announcement of the potential move has raised concerns among executives about employee retention and potential layoffs if the merger is finalized. Ellison's father, Larry Ellison, has guaranteed $46.7 billion toward the merger, which also includes $24 billion in commitments from Middle Eastern sovereign wealth funds.