In trying to rally industry support behind the Paramount-Warner Bros. megamerger, he has claimed the combined studios will release an unprecedented 30-plus films a year. Waving the banner for the entertainment industry in his home state, Ellison also has been lobbying for bipartisan federal film tax incentive legislation, having met with Republicans in D.C. on the issue as recently as mid-July. And just a short time ago, Ellison was fully expecting to keep both Paramount and Warner Bros. in California.
After outbidding Netflix in February to clinch the blockbuster deal, Ellison was queried by two prominent Democrats from the state — Sen. Laura Friedman — about his commitments to jobs in California. Ellison wrote in his reply that “my promise to you is to build a stronger Hollywood, by keeping both of these legacy studios operating separately, thereby preserving and potentially increasing jobs.” And this: “Paramount has deep roots in Southern California.
My vision as a CEO is to stay true to our roots.” Ellison has since become deeply frustrated with California politics. So much so that he recently told his senior-level team that Paramount will begin the process of pulling up stakes from the Golden State as soon as Oct. 1 unless the Warner Bros. Discovery merger is closed by the end of September — a deal that is currently on hold pending a 12-state antitrust lawsuit seeking to block it.
The message that Ellison intends to take his business elsewhere seemed pointed directly at California attorney general Rob Bonta, who is leading the states’ lawsuit. Ellison wants the attorneys general to agree to hash out a settlement that would presumably let both sides save face — and close the deal before the case goes to trial in March 2027. At least publicly, Bonta has been unmoved.
On Monday, Paramount launched another bid to try to get the state AGs to the bargaining table, asking the judge overseeing the case to force the states and the WGA (which has also sued to block the Paramount-WB merger) to post a $1.88 billion bond. A rep for Bonta said Paramount was seeking a “do-over” on its agreement to delay the Warner Bros. Discovery merger until the antitrust trial: “They are lying in a bed of their own making, and once again, trying to blackmail us to get us to back down.” The lawsuits by the states and the WGA are the final obstacle to closing, after regulators in Mexico cleared the merger, leaving .
Ellison said in a statement that “we have offered commitments and concessions and remain open to working constructively with the state AGs to find a path forward in the interest of our employees and the creative community in California and across the world.” But if Bonta and the attorneys general don’t engage, where will Ellison relocate? For now, the destination is unknown. States shortlisted for Paramount’s potential future home include Tennessee, Texas and Georgia.
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