David Ellison has threatened to move Paramount headquarters out of California on October 1 unless state prosecutors negotiate a settlement in an antitrust lawsuit. Variety reported that the chief executive of Skydance and future head of the combined company wants California Attorney General Rob Bonta to discuss ending the legal block on Paramount's merger with Warner Bros. Discovery.
The maneuver carries unprecedented logistical and institutional scope for Hollywood as Paramount seeks to resolve an antitrust appeal brought by 12 states. Internal sources told Variety that Ellison informed top studio leaders of the decision during an August 5 meeting that surprised several executives. Studio directors Dana Goldberg and Josh Greenstein attended the meeting alongside CBS president George Cheeks, and the board of directors of Paramount Skydance has already approved the phased relocation plan.
Judge Araceli Martinez-Olguin set the antitrust trial to begin on March 2, 2027, to determine whether the $111 billion merger violates free competition rules. The oral trial will run for 12 business days through March 19, missing Paramount's formal request to start proceedings in November to shorten the timeline. Prosecutors from the 12 litigating states and the Writers Guild of America had asked to delay the trial until April 2027.
Financial penalties and court delays
The judicial delay carries significant financial costs for Paramount under the terms of the merger agreement. Starting October 1, Paramount will accumulate daily penalty fees of $7 million payable to Warner Bros. Discovery shareholders until the transaction closes. According to calculations by Variety, if the trial ends as scheduled in March 2027, total management fees will reach approximately $1.2 billion.
Potential relocation destinations
Ellison proposed a five-year plan to move most company jobs out of California to avoid ongoing financial losses and force a settlement with prosecutors. Paramount's main offices in Los Angeles would be the first to move under the plan. Variety noted that the company has not decided on an exact location for its new headquarters, though states with flexible tax structures including Georgia, Texas, and Tennessee are being considered.
