Paramount CEO Ellison Threatens California Exit by Oct. 1 Over Merger Dispute

Paramount CEO David Ellison told top executives on August 11 that the company will exit California starting October 1 if state Attorney General Rob Bonta refuses to negotiate a settlement in the $111 billion Warner Bros. Discovery merger case. The October 1 date marks when Paramount begins accruing a $7 million daily ticking fee. Bonta called the threat blackmail. The merger has cleared federal and international regulators but faces a 12-state antitrust challenge set for trial in March 2027.

Why Ellison set an October 1 deadline

October 1 is when Paramount starts paying $7 million per day to Warner Bros. shareholders if the merger remains unclosed. Ellison told his 12-member executive leadership team during a Wednesday lunch meeting that he will move either standalone Paramount or the combined company out of state unless Bonta agrees to settlement talks by then. The Paramount board has already approved the relocation plan, according to reporting from Puck and confirmed by Variety.

Ellison’s shortlist includes Georgia, Texas, and Tennessee

Ellison has not yet decided where Paramount will relocate but is exploring Tennessee, Texas, and Georgia, sources told Variety. His father Larry Ellison’s Oracle is in the process of moving to Nashville, Tennessee. A relocation would start with the company’s headquarters, followed by studio jobs. The move would affect 30,000 Paramount jobs currently in Southern California and would eventually include selling the Paramount lot.

Bonta fires back, calls the threat blackmail

California Attorney General Rob Bonta called Ellison’s plan an attempt to blackmail the state into approving an illegal deal. Bonta said on X that Paramount has lost in court repeatedly and that the threat will not work. He noted the 20 state attorneys general leading the case are confident in their antitrust claims covering wide release films, blockbuster films, and cable network programming. Bonta said any settlement must involve structural remedies like divestitures, not behavioral promises such as Ellison’s commitment to release 30 films per year.

The merger’s regulatory path and financial pressure

The $111 billion Paramount-Warner Bros. Discovery merger has been approved by the DOJ and international regulators including the EU and UK. Ellison expressed confidence on Paramount’s second-quarter earnings call that the deal will close. However, the 12-state antitrust lawsuit remains the final hurdle. Ellison told his team he does not want to relocate but feels unwelcome in California amid the PR battle with Bonta. The trial is scheduled for March 2027 in federal court in the Northern District of California.

Final Thoughts

Paramount stock (PARA) trades at $1.70, up 2.4% on August 11, but down 97.7% over one year amid the merger uncertainty and operational losses. Meyka rates PARA a C+ with a Sell recommendation, citing weak ROE and ROA scores. The relocation threat signals Ellison’s willingness to abandon California rather than accept Bonta’s demand for structural remedies, setting up a high-stakes negotiation before October 1.

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