Paramount Informs Officials It Is Preparing to Leave California

Paramount has informed the offices of Los Angeles Mayor Karen Bass and California Attorney General Rob Bonta that it is preparing to leave the state amid an escalating legal battle over its proposed $110 billion merger with Warner Bros. Discovery. The company has reportedly taken concrete steps, including putting down a deposit on moving trucks, though no formal announcement has been made. Sources within Paramount told officials the company is "deadly serious" about relocating its headquarters, with Tennessee, Texas, and Georgia under consideration. A formal announcement was reportedly scheduled for September 17 but did not occur, leaving uncertainty about whether the timeline has shifted. The threat stems from an antitrust lawsuit filed in July by Bonta and 11 other state attorneys general seeking to block the merger, arguing it would reduce competition and give the combined company excessive market power. Paramount CEO David Ellison has set an October 1 deadline, after which the company would begin accruing a "ticking fee" of approximately $7 million per day owed to Warner Bros. Discovery shareholders if the merger does not close.