Paramount CEO David Ellison faces mounting criticism over his recent threat to relocate the studio from California unless a proposed merger with Warner Bros. Discovery closes by the end of September. The ultimatum comes after Ellison expressed frustration with state politics, particularly regarding California’s ongoing antitrust lawsuit blocking the deal. This represents a dramatic shift from Ellison’s earlier commitments to state lawmakers, in which he promised to maintain both studios’ operations in California and preserve jobs in the region.
The dispute centers on California Attorney General Rob Bonta’s legal challenge to the merger, which currently remains on hold pending trial in March 2027. Ellison has indicated that Paramount will begin relocating operations on October 1st if the deal doesn’t close, prompting Bonta to characterize the threat as blackmail. Industry observers remain divided on whether Ellison’s relocation strategy constitutes sound business strategy or a damaging move that could alienate the entertainment community.
Tennessee, Texas, and Georgia have emerged as potential relocation destinations, with Ellison’s father Larry already having moved Oracle’s headquarters to Texas and planning further expansion in Nashville. Despite management’s public statements about willingness to negotiate, some industry insiders expressed skepticism about the move, with actor Noah Wyle calling a wholesale exodus from Hollywood “strategically unwise” and warning it could undermine Ellison’s standing in the entertainment sector.
Originally reported by Variety →
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