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Paramount could pack up and move its legendary film and television business to Nashville, according to rumors that at first seemed absurd, but are actually plausible according to political insiders.

Why it matters: The relocation of some or all of Paramount's business offers a rare economic development opportunity for Nashville by leveling up the city's already-booming entertainment industry and attracting thousands of jobs.

Driving the news: Paramount CEO David Ellison is trying to close on the Paramount-Warner Bros. Discovery merger.

• California leads a coalition of states suing to stop the merger for antitrust reasons. In response, Ellison has floated relocating Paramount's business to a place where the cost of living and tax burden is lower than California.
• In addition to Nashville, Atlanta and Austin are mentioned as relocation possibilities.

By the numbers: The merger is valued at $111 billion.

• To put that into context: Nashville business boosters act giddy at the prospect of attracting an MLB team here. The most valuable MLB franchise is worth $8.2 billion, according to Forbes.

What Nate's hearing: News coverage in Variety and the Hollywood Reporter and an op-ed in the New York Times cranked up the rumor mill last week. I reached out to political insiders to get their thoughts, expecting the idea to be dismissed as goofy.

• Instead, the responses I got ranged from "I actually think that could work" to "That's going to happen."

Yes, but: Nashville could simply be a pawn in Ellison's political standoff with California politicians, relegating the rumor to Hollywood trade industry fodder, and nothing more.

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In the event Ellison is serious about a relocation and not merely playing public relations chicken with a strident California attorney general, here's the case for why Nashville makes sense.

• The tax burden is lower here. It's why major companies like Starbucks, Amazon and AllianceBernstein set up shop in Nashville.
• Thanks to country music, the entertainment industry thrives here, making Nashville a cultural fit for executives who may be forced to move.
• The local film and TV business is a minuscule fraction of Southern California's — obviously — but it is growing. Productions of "Nashville," "9-1-1: Nashville" and Reese Witherspoon's production company are prime examples.

Inside the room: To pull off a deal like this, it would take tax incentives. Hanging over the debate about Paramount's future is the fact that film and TV productions are increasingly looking outside California to other states and countries that offer generous incentive programs.

• The Ellison family has found success negotiating such incentives in Nashville.
• The Oracle headquarters project on the East Bank is finally making progress, though slower than expected.

The intrigue: There's also the X-factor of the next governor. U.S. Sen. Marsha Blackburn, the heavy favorite in the race, served as the executive director of the state's film, music and entertainment commission in the 1990s.

• A massive relocation of Paramount would seemingly be in her wheelhouse.

The case against Nashville

Despite the advantages for Paramount to move, Hollywood observers are casting doubt on such a deal.

• Like Nashville's country music industry, Hollywood is still very much a place where personal relationships are foundational to doing business. If executives are shipped out to Nashville, it would undercut their ability to close a deal over dinner at Osteria Mozza.
• To use a Nashville analogy: Even if it were cheaper to record a record in some other city, one couldn't transport the Music Row infrastructure overnight since all of the top producers, musicians, songwriters and executives call Nashville home.

Even if Paramount is serious about a move, there would be steep competition from cities like Austin and Atlanta, which have more established film and TV industries.

The bottom line: Sharon Waxman, editor in chief of The Wrap, concluded her New York Times op-ed by quipping, "And let's face it, no one really wants to move from Beverly Hills to Nashville."

• That would be news to Nashvillians, who have watched Californians move here in droves.
• Time will tell if Paramount-to-Nashville turns out to be a record-setting economic development project or simply Hollywood tabloid gossip.

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Mayor Freddie O'Connell proposed new programs on Friday to help small businesses. (Axios Nashville)

Tennessee expected to collect $55 million in hemp taxes, but actual collections were just $1.4 million. (Tennessean)

A Colorado man was found dead near downtown after being reported missing earlier last week. Police do not suspect foul play. (NewsChannel 5)

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Bonnaroo will take a "year off" in 2027 to give The Farm "time to rest and recover" from years of heavy rain, organizers said last week.

• Read our story

Between the lines: Organizers said the break would "only make Bonnaroo better," but they didn't specify what improvements were planned or when the festival would return.

State of play: We're using our Music Monday playlist to remember brighter days.

• We've assembled tracks from some of our favorite Bonnaroo sets from over the years.

Nate's picks lean heavily on the 2014 lineup, which he saw in person while reporting on the festival for the Tennessean. It's an all-timer, including Elton John, Lionel Richie and Janelle Monáe.

Adam never attended in person, but if he could go back in time, he'd choose 2013, which featured a legendary performance from Paul McCartney, Tom Petty, Kendrick Lamar and an up-and-coming Charli XCX.

Follow our playlist on Spotify

Our picks:

⚾️ Nate is living through the terrifying highs and dizzying lows of the Cubs season.

Adam is catching up on years of "Abbott Elementary."

This newsletter was edited by Jen Burkett.