Paramount to Leave California According to L.A. Mayor Office?

TMZ reports today that officials in the Los Angeles mayor’s office and California Attorney General Rob Bonta’s office were told Paramount Skydance planned to announce it is leaving California, beginning October 1st.

Last month, David Ellison told executives he would commence moving Paramount out of the state unless Attorney General Bonta agrees to settle the antitrust suit blocking the Warner Bros. by October 1st.

That announcement was expected as early as Tuesday and did not happen; it is unclear whether plans changed or were simply delayed.

However, AOL reports “Paramount appeared poised to announce a dramatic exit from California, but the expected statement never arrived. The surprise delay left Los Angeles officials unsure whether David Ellison changed course or simply postponed the announcement.”

TMZ reported today:

We’re told the Mayor and the A.G. were told the announcement would come yesterday, but it did not happen. We do not know if circumstances changed or if there was just a delay.

As you probably know, the California Attorney General — other with 11 other state attorneys general — have filed an anti-trust lawsuit against Paramount, trying to block the Warner Bros merger.

There were settlement negotiations over the last few months, but they couldn’t reach a deal. Attorney General Rob Bonta said Paramount was being unreasonable.

In July, the Globe reported that Tennessee was courting David Ellison’s Paramount.

Amid California’s effort to block Paramount’s $111 billion acquisition of Warner Bros., the state of Tennessee has invited the David Ellison-owned studio to relocate there.

The state of Georgia was also named as romancing the multi-billion dollar mass media and entertainment conglomerate.

Notably, in 2024, Oracle CEO Larry Ellison announced he would be moving Oracle from Austin to Nashville, Tennessee.

The Globe reported:

Headquartered in Santa Clara in 1977, Oracle became a behemoth while headquartered in California. However, by the late 2010’s, high taxes and California’s unfriendly business practices made Oracle reconsider staying in California. The pandemic and California’s 3-year lockdowns sealed the deal as a more flexible work policy for employees eliminated the need for such a large HQ in California. In December 2020, Oracle announced they would be moving to Texas. Ellison too also left California, making Hawaii his permanent residence.

The Globe also reported, Paramount Considering Moving its HQ, Pulling $30B Annual Spending out of California, and California Leads Coalition of 12 States in Antitrust Lawsuit to Block $110 Billion Paramount-Warner Bros Discovery Merger.

The loss to the California economy would be roughly $30 billion.

A leaked Los Angeles County Economic Development Corporation report projects 29,000–58,000 full-time jobs lost statewide if operations fully relocate, including vendors and induced spending. Permanent annual economic output loss is estimated at $10.6–21.2 billion, with state/local tax revenue down $585 million–$1.17 billion.

While Paramount’s reported plans to leave California appear uncertain at the moment, Bonta’s antitrust suit is a deal breaker.

Nothing is final. No official Paramount press release has gone out, no destination has been confirmed, and court-ordered settlement talks are still scheduled for mid-October. The story is real and developing, but it remains a reported preparation and pressure tactic rather than a completed departure.

But if Paramount is talking an October 1, something needs to be settled and soon.

Paramount declined to comment.

The Globe will update as more details are released.