LOS ANGELES, CA — Paramount has told key city and state officials that it is prepared to leave the state as its legal fight over a proposed merger with Warner Bros. Discovery intensifies, according to multiple reports.
People in Los Angeles Mayor Karen Bass' office and California Attorney General Rob Bonta's office were told Paramount would announce Tuesday that it was leaving California, TMZ reported Wednesday, citing sources familiar with internal discussions.
The announcement did not happen, and TMZ reported it was unclear whether Paramount's plans had changed or the announcement had simply been delayed. Paramount declined to comment to the outlet.
Politico on Wednesday reported that Paramount has been searching for office space in Nashville that it could move to in two to three years.
Deadline reported Wednesday that Paramount executives have told key officials and stakeholders the company is "deadly serious" about leaving California after more than a century in Hollywood.
Tennessee, Texas and Georgia — which is California's biggest competing state for production activity — are among the states Paramount has considered for a possible relocation, according to Deadline. Paramount also declined to comment to the publication.
Bass' office told Deadline that the mayor remains focused on protecting entertainment industry jobs and keeping Los Angeles home to Hollywood.
Bonta's office, meanwhile, said Paramount has repeatedly raised the possibility of leaving California and that the attorney general would continue enforcing antitrust laws while remaining open to good-faith settlement discussions, Deadline reported.
The dispute stems from Bonta's effort to block Paramount's proposed acquisition of Warner Bros. Discovery. Bonta led a coalition of 12 attorneys general in filing an antitrust lawsuit in July, arguing the combination would reduce competition among major film studios and cable programmers and ultimately harm consumers.
Paramount has rejected the states' antitrust arguments.
Ellison previously told senior executives he was prepared to move the combined studio business out of California if Bonta and the other attorneys general did not reach a settlement, with a possible move beginning as early as Oct. 1, according to reports in August.
Bonta responded at the time by accusing Paramount of attempting to "blackmail" California into allowing the deal to proceed.
The two sides are now scheduled to participate in court-ordered settlement talks Oct. 14 and 15, the Los Angeles Times reported Wednesday. A trial over the states' antitrust challenge is scheduled for March 2.
A Paramount departure could carry significant economic consequences.
An economic analysis released earlier this month estimated that a complete relocation of Paramount's headquarters and other California operations could eventually lead to the loss of roughly 29,000 to 58,000 full-time jobs statewide across multiple industries and between $10.6 billion and $21.2 billion in annual economic output, the Wrap reported.
Even a more limited relocation could result in thousands of lost job-years and between $1.01 billion and $2.03 billion in lost economic activity over a five-year period, according to the analysis.
The latest reports come as California and Los Angeles officials have sought to stem years of film and television production moving to other states and countries.
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