David Ellison threatens to take Paramount out of California if the state doesn’t negotiate the antitrust suit

David Ellison says he is willing to move Paramount’s headquarters as of October 1 if the antitrust lawsuit against his company isn’t dropped. This lawsuit, brought by 12 states over the acquisition of Warner Bros., would mean the company would have to pay Warner investors $3 million per day starting October 1, would not go to trial until March 2, 2027. Something Ellison is seeking to avoid with this threat.

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A threat with problems

California Attorney General Rob Bonta has described this move as “an attempt to blackmail the state so that it will be allowed to carry out an illegal deal.” Going so far as to state on his X account, the social network formerly known as Twitter, that, “Paramount has lost its bearings as it keeps losing in court. It didn’t work the first time—on the eve of our July lawsuit—and it won’t work this time“.

This move is so sudden that Paramount still doesn’t even know where it would move if it carried out its threat. The most likely destinations seem to be Georgia, Texas, and Tennessee, but no one seems to know which destination is most likely right now.

In any case, a move on this scale would be difficult and problematic. There would be layoffs and resignations and even if it could be done, it would come at the cost of major structural problems for Paramount, especially on such a short timetable. So while the threat is on the table, it remains to be seen how plays out. Because although it sounds forceful, it doesn’t seem likely they can follow through. Or not without creating as many or more problems than if they didn’t.