David Ellison is threatening to move Paramount Skydance out of California if the 12 attorneys general blocking his merger with Warner Brothers Discovery, including Rob Bonta, don’t make a deal.
According to Variety, Ellison told executives that he wants to negotiate a deal with the AGs by October 1st; otherwise, he’s “prepared” to move Paramount or the combined new company Paramount Warner Brothers Discovery out of the state. The outlet reported that some of the states up for consideration include Georgia, Texas, and Tennessee.
On October 1st, Paramount has to pay a ticking fee of $7 million per day to Warner shareholders or $650 million per quarter.
Attorney General Rob Bonta released the following statement:
“In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through. Paramount has lost the plot as it continues to lose in court. It didn't work the first time — on the eve of our July lawsuit — and it won't work this time.”
Jonathan Handel, an entertainment lawyer, said that if Ellison’s threat is real, then Paramount relocating would “be an enormous loss for Hollywood.
“This threat today is an acceleration of the saber rattling,” he told KNX News’ Jon Baird. It really shows how desperate David Ellison is. He doesn't have any real cards to pull in the face of a trial date that's very unfavorable to him.”
The attorneys general argued the merger will reduce competition in the basic cable and theatrical markets, while the Writers Guild claimed in a lawsuit that the merger would mean fewer films and TV shows being produced and fewer employment opportunities.
If Paramount goes to trial and loses, the company would also have to pay Warner Brothers Discovery a $7 billion termination fee.
Follow KNX News 1070 AM
