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A confidential analysis from the Los Angeles Economic Development Corporation reveals significant economic consequences should Paramount Skydance relocate from California. According to the report obtained by Politico, the move would eliminate between 2,750 and 5,550 job-years across multiple industries within the state and reduce economic output by $1.01 billion to $2.03 billion over a five-year period beginning October 2026.
David Ellison, who is overseeing the $111 billion merger between Paramount Skydance and Warner Bros., issued an ultimatum to California Attorney General Rob Bonta and allied state officials to settle their lawsuit blocking the deal or face the company’s departure. States including Georgia, Texas, and Tennessee are reportedly under consideration for the company’s new base. Long-term projections in the leaked report suggest permanent losses of approximately 28,990 to 57,980 full-time positions statewide and annual economic output reductions ranging from $10.6 billion to $21.2 billion.
Settlement negotiations between Ellison and Bonta stalled in late August after the attorney general canceled a scheduled meeting, claiming the Paramount team had leaked confidential details of their discussions. Paramount disputed these allegations. A trial is scheduled to commence March 2, while Paramount faces daily payments of $7 million to Warner Bros. Discovery shareholders beginning October 1, raising the financial stakes for all parties involved.
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Originally reported by Variety →
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