David Ellison is threatening to move Paramount Skydance out of California if state Attorney General Rob Bonta refuses to budge over the Warner Bros. Discovery merger by Oct. 1.
An individual with knowledge of the conversation told TheWrap that Ellison held an hourlong lunch meeting on the Paramount lot with his 12-member executive leadership team last week, in which he insisted his goal was to keep the company’s 30,000 jobs in Southern California but cautioned that if Bonta won’t negotiate a settlement by the time the company’s $7 million per day ticking fee kicks in, he will be moving standalone Paramount or the combined Paramount-WBD out of state regardless of the outcome.
Tennessee, Texas and Georgia were all mentioned as options for the new Paramount home, and Ellison is in touch with multiple states to discuss his potential five-year plan. Larry Ellison’s Oracle is in the process of moving to Nashville, Tennessee, and David Ellison is strong considering that state, according to the knowledgeable individual.
The move would be a massive blow to California as one of the major Hollywood studios shifts thousands of jobs out of state. The plan would involve selling the Paramount lot, moving executives and business functions out of state and retaining some kind of presence in California.
Dana Goldberg, Josh Greenstein, Cindy Holland and George Cheeks were all in attendance at the Wednesday lunch meeting.
California Attorney General Rob Bonta responded Tuesday morning by calling Ellison’s bluff.
“In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through,” Bonta said. “Paramount has lost the plot as it continues to lose in court. It didn’t work the first time — on the eve of our July lawsuit — and it won’t work this time.”
Ellison’s threat arrives as his $110 billion Warner Bros. Discovery acquisition was dealt a major blow when the judge in the state AG’s antitrust case set a March trial date, which means this case may not be over until next summer or later with that hefty ticking fee in place.
The Paramount Skydance CEO has gone on the offensive, securing the backing of two of the biggest theater chains to counter fears that he would be unable to fulfill his promise of releasing 30 films a year in theaters under a combined Paramount-Warner Bros.
Still, Ellison seemingly remains confident the $110 billion Paramount-Warner deal will close. But if the 12 state AGs who sued successfully block the merger, Paramount will instead be required to pay a $7 billion termination fee to Warner Bros. Discovery.
Puck was first to report the news.
