Paramount has reportedly stepped up preparations to relocate after merger talks with state officials broke down last month
Paramount has reportedly turned up the heat with new threats to leave Los Angeles as its planned $110 billion acquisition of Warner Bros. Discovery becomes entangled in a legal dispute with California.
The studio has reportedly stepped up preparations to relocate after merger talks with state officials broke down last month. California Attorney General Rob Bonta has accused the Hollywood studio of resorting to “blackmail” to pressure him to drop the antitrust case.
Los Angeles Mayor Karen Bass, however, is taking the threat seriously and urging both sides to find common ground.
Paramount has told Bass that it has placed a deposit for moving trucks, while company insiders say it is exploring office space in Tennessee. Texas and Georgia are also reportedly under consideration.
Steve Kang, Bass’ film industry liaison, said Wednesday that Los Angeles must prepare for a potential Paramount relocation, whether or not the company ultimately moves.
The dispute comes as Paramount faces an October 1 deadline to complete its transaction with WBD or begin paying shareholders a $7 million daily ticking fee.
A departure could have a significant economic impact. Paramount has operated in the city for more than a century and remains the last major studio headquartered within Los Angeles proper. A headquarters move could cost LA County more than 1,000 jobs, while a broader departure could put tens of thousands more at risk.
The region could lose up to $2 billion over five years, per a recent estimate by the LA County Economic Development Corporation.
Bonta’s office says it remains open to talks but is seeking “robust structural remedies.”
A court-supervised settlement conference is scheduled for next month.