Paramount Board Approves Plan to Ditch California as Texas Courts Hollywood Giant
Ben Kew Paramount’s board of directors has reportedly approved a plan to move the Hollywood giant out of California, with Texas among the states being considered for its new home.
According to The San Francisco Chronicle, the company could begin relocating operations as soon as October 1st.
The plan depends on whether California Attorney General Rob Bonta refuses to negotiate over the state’s lawsuit seeking to block Paramount’s roughly $110 billion acquisition of Warner Bros. Discovery.
States, including Tennessee and Georgia, are also under consideration.
Texas Governor Greg Abbott’s office has publicly encouraged the company to make the move.
“Paramount already maintains major production facilities in Texas and has filmed numerous successful productions in Texas over the years,” Abbott’s press secretary told The New York Post.
“Companies that leave high-tax, high-regulation states like California will find opportunity and succeed here.”
Bonta is leading California and 11 other states in an antitrust lawsuit seeking to stop Paramount from acquiring Warner Bros. Discovery.
The states claim that combining the two entertainment companies would reduce competition, increase prices, and hurt workers.
Paramount denies those allegations and has already secured approval for the transaction from dozens of jurisdictions around the world.
However, the real reason behind their opposition is Ellison’s ties to Trump and the GOP.
This has led to fears among Democrats that right-leaning figures could wield substantial control over the entertainment industry.
Both Larry and David Ellison are prominent Trump donors and allies, although the latter’s past political donations have included substantial support for Democrats.
The legal battle is also becoming very expensive.
Paramount recently asked a federal judge to require the states challenging the merger to post a $1.88 billion bond, arguing that delays could trigger enormous costs.
Under the acquisition agreement, Paramount faces approximately $7 million per day in “ticking fees” if the transaction remains incomplete by the end of September.
California is also under pressure to resolve the dispute.
Cinema United, which represents approximately 30,000 movie screens nationwide, called this week for Paramount and Bonta to negotiate a settlement.
Major theater chains, including AMC, Cinemark, and Regal, have also backed the merger.
Paramount has not committed publicly to Texas, and any relocation would likely take place over several years.
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