Paramount’s David Ellison Threatens to Move Company Out of California

Paramount’s high-stakes battle over its $111 billion merger with Warner Bros. Discovery has taken a dramatic new turn, one that could reshape not just the deal’s future but the physical footprint of one of Hollywood’s most storied studios. The clash centers on a lawsuit filed by twelve state attorneys general, led by California’s Rob Bonta, seeking to block the merger entirely on antitrust grounds.

That lawsuit, filed in July, argues the combination of Paramount and Warner Bros. Discovery would drive up prices, reduce content quality, and harm both movie theaters and everyday audiences by eliminating competition between two of the industry’s biggest studios. The case gained added urgency after a federal judge recently set a March 2027 trial date, extending the legal fight far longer than Paramount had hoped.

That extended timeline now appears to be pushing Paramount CEO David Ellison toward a drastic response. According to Variety, Ellison is prepared to begin relocating Paramount out of California starting October 1 unless Bonta agrees to enter settlement talks, with sources confirming the Paramount Skydance board has already approved the potential move. Ellison reportedly delivered that message directly to his senior executive team during an August 5 meeting on the studio’s lot.

The timing carries significant financial weight for Paramount. Starting October 1, the company will begin accruing a “ticking fee” payable to Warner Bros. Discovery shareholders of $7 million per day until the merger closes, a cost that could balloon to roughly $1.2 billion by the time the scheduled trial concludes next spring if the case drags on as currently planned.

Despite the financial pressure, Ellison reportedly told his executive team he remains confident Paramount will ultimately prevail in the antitrust case against the states. Still, he made clear that confidence hasn’t changed his willingness to follow through on relocating the company if Bonta continues declining to negotiate, according to the same Variety report.

Bonta, for his part, has pushed back forcefully against Paramount and Warner Bros. Discovery’s characterization of the lawsuit’s motives. In a guest column for Deadline, he argued that the companies have been running a public relations campaign built on falsehoods, insisting the legal challenge is grounded strictly in antitrust law rather than politics, and warning that the merger would ultimately raise costs and reduce choices for consumers.

Should Paramount follow through on relocating, reports have pointed to the company’s existing leased studio space in Bayonne, New Jersey, as a potential alternative base of operations. Given that Ellison moved Paramount’s headquarters from New York to Los Angeles after acquiring the company last year, a reversal of that decision would mark a striking reversal for an executive who has spent much of his life rooted in the Golden State.

With Bonta’s office giving no public indication of what concessions might satisfy the states enough to drop the lawsuit, and the March trial date still on the calendar, the standoff between Paramount and California’s attorney general shows no signs of resolving quickly. Whether Ellison’s threat proves to be genuine leverage or an actual relocation plan may become clearer as the October 1 deadline approaches.

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