David Ellison Threatens to Move Paramount Out of California Amid Antitrust Standoff
David Ellison is prepared to begin moving Paramount out of California on 1 October unless California Attorney General Rob Bonta agrees to settlement talks in the 12-state antitrust lawsuit seeking to block Paramount's $110 billion purchase of Warner Bros. Discovery, according to sources confirmed by Variety. The relocation threat was first reported by the industry newsletter Puck.
At a 5 August meeting with his 12-member senior executive team, Ellison said he expects Paramount to prevail in the antitrust case and that the Paramount Skydance board has approved the relocation plan, Variety reported. He outlined a five-year plan to shift most of Paramount's studio jobs out of California, with the Los Angeles headquarters moving first. Tax incentives from other states would help cover relocation costs. Paramount has not yet chosen a destination but is considering Georgia, Texas and Tennessee.
The date 1 October carries a separate financial pressure: it is when Paramount begins accruing a "ticking fee" of $7 million per day payable to Warner Bros. Discovery shareholders, though payments are not due until the deal closes, Variety reported.
The lawsuit at the centre of the standoff was filed on 13 July 2026 in the U.S. District Court for the Northern District of California. California, New York and ten other states — led by Democratic attorneys general — sued to block the merger, which the California attorney general's office describes as the largest in Hollywood history, valued at $110 billion (California AG press release). The Writers Guild of America is also named as a plaintiff in the suit (Variety). The complaint alleges the deal violates Section 7 of the Clayton Act by substantially lessening competition (Puck).
Bonta has said any remedies would need to be "structural" — meaning forced sales of assets — rather than "behavioural" measures such as production quotas, Variety reported. He also wants Paramount to sell CNN as part of any settlement (Puck). Ellison, for his part, believes the litigation is really about CNN rather than market competition (Variety).
The two sides are also sparring over timing. Bonta wants the trial in April; Paramount is pushing for November (Los Angeles Times). A judge has since scheduled the trial for 2 March 2027, Variety reported. On 23 July, a federal judge ruled that Paramount Skydance must pause the acquisition through 17 August (Reuters). Warner Bros. Discovery shareholders had overwhelmingly approved the takeover the previous day (Reuters). The U.S. Justice Department cleared the deal in June (Reuters).
Paramount's top lawyer, Makan Delrahim, said the company would be willing to delay the deal's closing until September if the judge promised to rule on the pending injunction request (Puck).
What makes the relocation threat land is its practical weight for the people inside the studio. A five-year plan to move most jobs out of California touches writers' rooms, production crews and administrative staff across the Los Angeles basin. SEC filings list 1515 Broadway in New York as Paramount Skydance's principal executive offices, but the studio's operational heart has long been in California. Ellison's father, Larry Ellison, previously moved Oracle from California to Texas and now resides in Florida (Puck).
Ellison is now focused on winning support, having first expressed confidence that Paramount would defeat the case (Puck). Whether the relocation plan proceeds may depend on whether Bonta agrees to talk before 1 October — or whether the dispute heads to a courtroom in March 2027.
