Bonta slams Paramount relocation threat over Warner Bros. merger as 'blackmail'
Paramount exit threat puts CA jobs at risk
A reported threat by Paramount to move its massive studio operation out of California unless the state drops a legal challenge to its proposed merger with Warner Bros. amounts to a "blackmail" attempt, Attorney General Rob Bonta said Tuesday.
LOS ANGELES - California Attorney General Rob Bonta has publicly blasted reports that Paramount is threatening to move its studio operation out of California if state officials do not drop their legal challenge to the proposed merger with Warner Bros. Discovery.
Bonta characterized the reported tactic as a "blackmail" attempt while affirming the state's resolve to stop the deal.
What we know:
According to reports from Puck and Variety, Paramount-Skydance CEO David Ellison informed senior executives that he is prepared to begin relocating the combined studio business out of California as early as Oct. 1 unless settlement negotiations begin.
A coalition of 12 state attorneys general led by California filed an antitrust lawsuit on July 13 to block the consolidation, and the Writers Guild of America has filed a separate legal challenge.
Labor unions including SAG-AFTRA have announced support for the lawsuits, while Paramount continues to maintain that the transaction is lawful, pro-competitive, and has secured clearance from international regulators.
What we don't know:
It's unconfirmed whether Paramount will officially execute the relocation plan, as the studio has not issued a public comment regarding the reported threat.
Additionally, it is unclear how the looming financial terms will impact settlement posture, given that Paramount faces contractual provisions requiring it to pay WBD roughly $7 million per day if the acquisition does not close after Sept. 30.
Timeline:
- July 13: State attorneys general file an antitrust lawsuit to halt the deal; Writers Guild of America files a separate legal challenge.
- Aug. 3: The planned preliminary injunction hearing is canceled after companies agree to pause the deal while defending the lawsuit.
- Sept. 30: Contractual deadline after which Paramount faces approximately $7 million per day in delays under its agreement with WBD.
- Oct. 1: Reported earliest start date for Paramount to begin moving operations out of state if settlement negotiations fail to begin.
- March 2–19: Scheduled trial period in Oakland federal court before U.S. District Judge Araceli Martínez-Olguín.
What they're saying:
California Attorney General Rob Bonta criticized the studio's strategy, writing on X: "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."
Paramount-Skydance CEO David Ellison expressed confidence in shareholder messaging, writing: "As it relates to the planned acquisition of Warner Bros. Discovery, we fully expect the transaction to close and remain focused on preparing for a successful combination once it is complete."
SAG-AFTRA President Sean Astin emphasized worker protections, stating: "These companies have the ability to commit to making more films and shows in this country and they should. This isn't a conversation about shareholder value, it's about the survival of the entertainment business in America."
The Source: This report is compiled from public statements posted on social media by California Attorney General Rob Bonta, federal court trial scheduling orders, and official corporate filings, alongside industry reporting originally broken by Puck and Variety. Additional statements were sourced directly from union announcements by the Writers Guild of America and SAG-AFTRA, as well as formal press responses provided by Paramount representatives. City News Service contributed.