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Paramount threatens to leave California for blocking $110 billion merger with Warner Bros, state AG slams ‘blackmail’
California Attorney General Rob Bonta has reacted to reports that Paramount Skydance plans to leave the state amid uncertainty over merger with Warner Bros.
According to reports, Hollywood giant Paramount has threatened to leave California if the state's top lawyer doesn’t settle a lawsuit challenging the company’s planned merger with Warner Bros. Reacting to it, California Attorney General Rob Bonta called it “blackmail’ in a post on social media
Paramount moving out of California?
Paramount’s board has approved a possible move from California as early as October 1, Bloomberg reported, citing an insider familiar with the company’s plans. Chief Executive Officer David Ellison told senior executives last week that the move would involve headquarters staff first, but that he’s putting together a five-year plan to shift most of the film and TV studio’s jobs to the new home.
This movie could also include the sale of one of the two big studio lots owned by Paramount and Warner Bros. in the Los Angeles area, if the merger ultimately goes through. The newsletter Puck and Variety also reported on Paramount’s plans. Many reports have linked this possible move to the California administration not clearing the company's merger with Warner Bros over monopoly concerns.
California AG Rob Bonta said he’s not concerned about job losses should Paramount leave California. “Our efforts to block the merger is what will deliver wins for California,” he said.
Paramount and Warner Bros' troubled merger
Last year, Paramount beat Netflix in a high-stakes bidding war to take over Warner Bros in a monumental $110 billion deal. However, California and 11 other states with Democratic attorneys general sued to block the deal last month. The suit alleges that the $110 billion transaction would give the company unfair control over the movie and cable TV businesses.
The lawsuit alleges the deal would harm competition for the distribution of films and cable-TV programming. While Bonta offered few details on what an appropriate settlement would be, he said any negotiation would need to include “real, robust structural remedies that address the concerns in the markets that we’ve identified in our complaint.”
The state’s victories include securing a March 2027 trial date, later than Paramount wanted, and securing the company’s commitment not to close the deal until early June.
To allay the fears, Paramount has offered two of the largest theatre chains, AMC Entertainment Holdings Inc. and Cineworld Group’s Regal Cinemas, written commitments to release at least 30 movies per year in theatres.
