😡 Paramount Threatens California Exit

The media giant plans to initiate the relocation of its headquarters and core studio facilities out of California as early as October 1, unless State Attorney General Rob Bonta agrees to come to the negotiating table.

During a closed-door meeting with executive leadership, Ellison announced that the board of directors has already approved a five-year plan to pull the majority of studio jobs out of California. Should the deal successfully close, the relocation could also extend to WBD. States offering attractive tax incentives—including Georgia, Texas, and Tennessee—are under consideration as potential new hubs.

California Attorney General Rob Bonta, who leads a 12-state coalition filing suit against the merger, strongly pushed back against Paramount’s tactic, labeling the media conglomerate’s move “an attempt at blackmail.” The attorney general’s office maintains that any concessions made by the merging giants must be structural—involving divestitures of assets—rather than purely behavioral.

Paramount’s ultimatum is driven by pressing financial deadlines: starting October 1, the company will owe WBD shareholders $7 million a day in delay penalties. With the trial not scheduled until March 2027, prolonged litigation could end up costing Paramount upwards of $1.2 billion.

If the merger is finalized, the combined entity—backed in part by Middle Eastern sovereign wealth funds and capital from Oracle founder Larry Ellison—is also expected to launch a wave of deep job cuts to streamline operating expenses.