California Attorney General Rob Bonta is calling David Ellison’s bluff.
After word leaked that the Paramount Skydance CEO told his top lieutenants last week that he will move the company out of California if Bonta doesn’t agree to negotiate a settlement of the state AGs’ antitrust lawsuit, Bonta responded on social media by calling the move “blackmail.”
“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. This illegal merger will result in higher costs, fewer options, and fewer people making movies. My office remains committed to stopping illegal consolidation and protecting a vibrant California economy for businesses that play by the rules.”
Bonta did not respond directly to Ellison’s assertion that he has ghosted Paramount on efforts to negotiate a settlement.
Tennessee, Texas and Georgia were all mentioned as options that Ellison is exploring for Paramount’s new home, with the CEO saying that he would move either standalone Paramount Skydance or a combined Paramount Warner Bros. Discovery out of state depending on whether his company wins the antitrust lawsuit.
Ellison’s deadline for Bonta to come to the negotiating table is Oct. 1, which is when the $7 million-per-day ticking fee kicks in. Paramount is on the hook for hundreds of millions of dollars to its shareholders as a result of the lawsuit, which set a trial date for March.
If Paramount loses the antitrust trial, the company is required to pay a $7 billion termination fee to Warner Bros. Discovery, on top of the ticking fees.
