&imwidth=800&imheight=600&format=webp&quality=medium "David Ellison will move Paramount out of California if the merger doesn’t close by October, amid legal opposition from 12 states")
The Paramount-Warner Bros. Discovery merger continues to face delays due to back-to-back hurdles. The latest roadblock: 12 states moving to block the deal. The case has pushed back the closing timeline, and now Paramount studio head David Ellison is reportedly preparing to move the studio out of California if the deal isn’t finalised.
Ellison has told senior Paramount executives that he plans to relocate the studio out of California if the merger doesn’t close by Sept. 30, sources have confirmed.
David Ellison plans to move Paramount out of California
Paramount Skydance's $110bn takeover of Warner Bros. Discovery has been dominating the headlines for over months now. The most recent challenge came when 12 states came together to challenge this deal. As states have taken a legal route that may push the deal further, it has been reported that Ellison has told top executives at his company about his plans to move Paramount out of California.
As per Variety, Ellison has shared that he will relocate Paramount’s operations outside of the state of California if the deal doesn't close by Sept 30. He has also told the team that the Paramount board has already approved this decision.
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For the unversed, the 12 US states led by California and the Writers Guild of America (WGA), have taken legal action against the deal, arguing that it would harm the competition in the market.
Now the race is against time. If the deal does not close in September, Paramount will have to pay a ticking fee penalty of $7 million per day, starting October 1st. The situation has become critical for the studio.
This comes as Tennessee has long sought to become the new home for one of Hollywood’s biggest studios. Other states in contention to host Paramount’s headquarters include Texas and Georgia. And if this happens, then California will loose it's two major studios.
Rob Bonta, the attorney of California and other 11-state coalition’s lawsuit, has responded to Ellison's call to take Paramount out amid the merger.
Taking to X, Bonta called this an another attempt to blackmail the state into letting an illegal deal through.
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.
''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.''
