Tennessee courts Paramount Skydance move amid merger lawsuit

The state of Tennessee has invited Paramount Skydance to relocate its headquarters from California as the entertainment giant faces a multistate lawsuit seeking to block its proposed $111 billion acquisition of Warner Bros. Discovery. Tennessee Deputy Governor and Economic and Community Development Commissioner Stuart McWhorter sent a letter dated July 2, 2026, to Paramount CEO David Ellison promoting the state’s business climate.

The recruitment effort follows legal action filed on Monday, July 13, by a coalition of 12 state attorneys general led by California’s Rob Bonta. The lawsuit, filed in federal court in San Francisco, alleges the merger would unlawfully consolidate two major Hollywood studios, reduce competition, limit creative diversity, and lead to higher prices and lower quality for consumers. The states joining California are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

In his letter, McWhorter highlighted Tennessee’s "fiscal discipline, low taxes, predictable governance, and a steadfast belief that government should be a partner in private-sector growth." He wrote that Tennessee offers...