Paramount CEO David Ellison is prepared to begin moving the company out of California as early as October 1 if the state continues to block the proposed merger with Warner Bros. Discovery, according to a report from Variety, as cited by Breitbart News.
Ellison has told senior executives that unless California Attorney General Rob Bonta agrees to negotiate a settlement in the antitrust case filed by 12 states, the company will start the process of exiting California on that date. The Paramount Skydance board has already approved the move, sources told Variety.
Bonta Accused of Stalling
Ellison is reportedly eager to reach a swift resolution in the case, but Bonta has refused to sit down to discuss a settlement. According to Breitbart’s reporting, Ellison believes Bonta is hoping to kill the merger through inaction, letting the legal costs and delays pile up until the deal becomes untenable.
The lawsuit, filed by a dozen states, seeks to block the merger on antitrust grounds. But Ellison and his allies argue the opposition is politically motivated, pointing out that even after a merger, the combined company would still trail giants like Netflix and Disney in market share.
Breitbart’s John Nolte wrote that the real issue is CNN, which is part of Warner Bros. Discovery. He claims Democrats fear that Ellison and journalist Bari Weiss might push CNN toward stricter journalistic standards, rather than serving as what he called a “propaganda mouthpiece” for the Democratic Party. That characterization is disputed, but it underscores the charged political climate surrounding the deal.
$7 Million Per Day Ticking Fee
The urgency of Ellison’s threat is tied to a contractual provision that takes effect on October 1. If the merger hasn’t closed by then, Ellison is required to pay Warner Bros. Discovery’s board a “ticking fee” of $7 million per day. That financial pressure is what makes the stall tactic so costly, and it’s why Ellison is pushing for a swift resolution.
If the merger eventually closes and Ellison does follow through on his threat, the relocation could affect tens of thousands of jobs. Paramount employs 17,600 people, and Warner Bros. Discovery employs 35,500, meaning a combined workforce of roughly 53,000 could be moved out of California.
What’s Next?
Ellison’s comments to senior executives suggest he is serious about leaving, and he has warned that the company will begin exiting California on October 1 if negotiations haven’t started. The ball is now in Bonta’s court, and the coming weeks will determine whether the two sides can reach a settlement or whether one of the country’s oldest studios will pack up and leave the state.
This is a developing story, and more details are expected as the October 1 deadline approaches.
Source: www.breitbart.com — https://www.breitbart.com/entertainment/2026/08/11/nolte-ellison-to-move-paramount-out-of-california-october-1-if-merger-block-continues/