Paramount is reportedly considering leaving California as the Golden State and others are said to be preparing a lawsuit over its planned acquisition of Warner Bros. Discovery is valued at $111 billion.
Sunday, Semaphore It was reported that “friends and advisers” of Paramount Chairman David Ellison are urging him to consider moving his company headquarters out of the state. The news comes as California and other states prepare to file a lawsuit to block the merger, according to New York Times.
Citing “people familiar with the discussions” Semaphore Reportedly, Ellison has been “pushed” to consider an out-of-state move, which would also move $30 million in planned spending out of California, if Attorney General Rob Bonta sues to block the deal.
However, the media reported that no decision has been made regarding this move. It is worth noting that Paramount purchased space in New Jersey last year. The studio has signed a 10-year lease to occupy more than 285,000 square feet of the 1888 Studios production campus in Bayonne, making Paramount eligible for a tax credit of up to 40 percent for films and TV shows filmed in the state.
Meanwhile, California has reportedly “taken the lead” in a potential lawsuit to block the merger, with states including New York, Washington and Connecticut saying they will join, according to the UK’s Daily Mail. New York Times. According to a draft of the lawsuit, it reportedly claims that the merger would hinder competition for tentpole films, among other concerns.
For its part, Paramount said the deal would boost competition in Hollywood, saying it was necessary to compete against tech giants including Netflix, Amazon and Apple.
Reuters reported on July 8 that a lawsuit could be filed as early as this week. Paramount aims to complete the deal in the third quarter of 2026.
“We are confident that the facts and the law support this deal, and we will continue to defend it vigorously,” Paramount said. New York Times.
The studio echoed this sentiment to Semaphore“We continue to work constructively with the few remaining regulatory agencies around the world that are still considering a merger, including state attorneys general, and we stand ready to address any legitimate antitrust issues. We are confident that this transaction raises no such concerns, as evidenced by the dozens of antitrust authorities around the world that have carefully reviewed the transaction.”
Last month, news emerged that the European Commission is expected to approve the merger before the next deadline to open an in-depth investigation. In addition, competition police in China and South Africa have cleared the merger, along with antitrust enforcers in Saudi Arabia, Ukraine, Serbia and North Macedonia. Regulators are investigating foreign investments from Gulf sovereign wealth funds in Germany, Italy, France, Rome, Slovenia, Belgium, the Czech Republic and New Zealand, and have also approved the merger.
A Paramount spokesperson said: “We have engaged with all regulatory and law enforcement agencies in a constructive and transparent manner and will continue to do so.” THR last month.
