The Writers Guild of America has responded sharply to threats made by Paramount Skydance CEO David Ellison regarding the company’s potential departure from California. Ellison had warned that Paramount would begin relocating operations starting October 1st unless California Attorney General Rob Bonta agreed to settle an ongoing antitrust lawsuit blocking the studio’s proposed acquisition of Warner Bros.
In a statement to media outlets, the WGA characterized Ellison’s ultimatum as evidence of the dangers posed by industry consolidation. The guild argued that resorting to relocation threats to circumvent legal scrutiny demonstrates exactly why regulatory authorities should reject the $110 billion merger proposal. The WGA, alongside Bonta and a coalition of twelve states, contends the transaction would violate antitrust laws and harm writers and other creative professionals.
Bonta dismissed the threat as a negotiation tactic, noting on social media that Paramount has repeatedly shifted its strategy during the legal process. He pointed out that the company initially agreed to pause the merger pending court decisions and trial dates, only to reverse course with what he called blackmail. The trial is scheduled for March 2027, with substantial financial penalties accruing daily for Paramount if the deal remains incomplete.
The dispute extends beyond antitrust concerns, with industry observers questioning whether political considerations influence the acquisition discussions, given Ellison’s stated proximity to political figures critical of cable news networks.
Originally reported by Variety →
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