David Ellison considers moving Paramount HQ from California amid Bonta legal fight
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Paramount Skydance chairman and CEO David Ellison is considering moving the company out of California amid his legal battle with California Attorney General Rob Bonta over the $110 billion Warner Bros. Discovery takeover, a source familiar with Ellison's thinking confirmed to Axios.
Why it matters: It's a striking rebuke of California by a major Hollywood studio when the state is fighting to keep film and television production from relocating elsewhere.
- The state has dramatically expanded its film and TV incentives in recent years to fight efforts to bring production to more cost-effective places, such as Georgia, Canada and the U.K.
- California's film commission said Monday it awarded Paramount and CBS more than $37 million in tax credits to shoot two TV series in the state.
Driving the news: Ellison raised the possibility of moving Paramount's operations out of California during a meeting with the company's leadership team last week, a source told Axios.
- The move, first reported by Semafor and later Puck, would see Paramount begin planning to shift its headquarters in coming months, unless Ellison is able to negotiate a settlement with Bonta, whose office is leading a 12-state coalition to block the merger.
- Paramount did not comment.
Zoom out: In recent weeks, tensions between Ellison and Bonta have escalated.
- Ellison argued in a New York Times op-ed last week that California's effort to block his WBD takeover is driven by politics and fears over his stewardship of CNN.
- On Monday, Bonta countered in a Deadline op-ed that he is leading a straightforward antitrust case that would prevent an unprecedented concentration of power in Hollywood.
- Bloomberg reported Paramount has offered to sign deals with major theater chains pledging to release 30 movies a year with a minimum 45-day theatrical window. It also reportedly would not make those films available on streaming for at least 90 days.
State of play: Paramount has fiercely rejected any antitrust arguments against its deal as it faces legal challenges from the states and the Writers Guild of America, which has similarly sued to block the transaction.
- Last month, a federal judge temporarily paused the deal following the states' lawsuit. Later, Paramount agreed to postpone closing its merger while the case is being litigated.
What to watch: Ellison has not indicated where he would move the company, but has strong ties to Tennessee.
