Bass pushes for talks as Paramount threatens California exit
Los Angeles Mayor Karen Bass is trying to persuade Paramount to stay in California after the studio warned it could leave the state.
The threat dates to July, when California sued to block Paramount's planned combination with Warner Bros. Discovery. Attorney General Rob Bonta led a coalition of 12 attorneys general in filing a challenge to the $110 billion transaction, according to California Attorney General's Office. The complaint, filed on 13 July as Case No. 4:26-cv-7116, names Paramount Skydance Corp. and Warner Bros. Discovery Inc. as defendants. The states also sought a temporary restraining order, a short-term court order to freeze the deal.
Bonta has described the exit warning as blackmail intended to stop competition enforcement. Bass is treating it seriously. She has told Paramount she wants the company to remain in Los Angeles and has urged Bonta to talk settlement.
Bass made that appeal last month. She said "This Is Not About Taking Sides" while pressing for negotiations in the antitrust case, meaning a legal fight over whether the merger would harm competition, according to Variety. Her office said Steve Kang, appointed in 2025 as her liaison to the film community, is part of that effort.
Money adds pressure. Paramount faces a 1 October deadline to close the Warner Bros. Discovery transaction or start paying a $7-million-a-day ticking fee, meaning a daily payment owed to Warner Bros. Discovery shareholders for delay, according to Variety. A court-supervised settlement conference, a formal meeting led by a judge to seek agreement, is set for 14-15 October. Bonta's office says it is open to good-faith talks but will accept only a deal with robust structural remedies, meaning major changes to the shape of the merger.
Paramount informed the offices of Bass and Bonta that it is preparing to leave California, according to TheWrap. Chairman David Ellison warned the move could follow if no settlement is reached by 1 October, according to TMZ. Paramount declined to comment on a potential move.
The fight follows months of deal manoeuvring. Paramount launched an all-cash tender offer, an open bid to buy shares directly from investors, for Warner Bros. Discovery at $30 per share in December 2025. It later affirmed that bid as superior. In August, Paramount Skydance said it had not leaked discussions with the attorney general, after Bonta cancelled a planned meeting.
What makes this stand out is the workforce behind the paperwork. A studio lot supports crews, writers' rooms and suppliers across Los Angeles. Bass has previously backed lower permit and parking costs and joined calls for an expanded film and television tax incentive to keep that work in the state.
