David Ellison Threatens to Move Paramount Out of California

David Ellison plans to move Paramount Skydance out of California if state Attorney General Rob Bonta refuses to budge over the Warner Bros. Discovery merger by Oct. 1.

According to multiple media reports on Monday after an initial Puck story, Ellison held an hourlong lunch meeting on the Paramount lot with his 12-member executive leadership team last week, in which he insisted his goal was to keep the company’s 30,000 jobs in Southern California but cautioned that if Bonta won’t negotiate a settlement by the time the company’s $7 million per day ticking fee kicks in, he will be moving standalone Paramount or the combined Paramount-WBD out of state regardless of the outcome. Tennessee, Texas and Georgia were all mentioned as options for the new Paramount home, and Ellison is reportedly in touch with multiple states to discuss his potential five-year plan.

The move would be a massive blow to California as one of the major Hollywood studios shifts thousands of jobs out of state. The plan would involve selling the Paramount lot, moving executives and business functions out of state and retaining some kind of presence in California.

Dana Goldberg, Josh Greenstein, Cindy Holland and George Cheeks are all said to have been in attendance at the Wednesday lunch meeting.

Paramount did not immediately respond to TheWrap’s request for comment.

Ellison’s threat arrives as his $110 billion Warner Bros. Discovery acquisition was dealt a major blow when the judge in the state AG’s antitrust case set a March trial date, which means this case may not be over until next summer or later with that hefty ticking fee in place.

The Paramount Skydance CEO has gone on the offensive, securing the backing of two of the biggest theater chains to counter fears that he would be unable to fulfill his promise of releasing 30 films a year in theaters under a combined Paramount-Warner Bros.

Still, Ellison seemingly remains confident the $110 billion Paramount-Warner deal will close. But if the 12 state AGs who sued successfully block the merger, Paramount will instead be required to pay a $7 billion termination fee to Warner Bros. Discovery.