Paramount Skydance Chairman and CEO David Ellison is exploring a potential California exit as the studio battles a multistate challenge to its $111 billion acquisition of Warner Bros. Discovery.
Politico reported late Wednesday that the studio is seeking roughly 400,000 square feet of office space in Nashville, signaling that its relocation is in the works. We have reported in the last few days and last month of Paramount's plan to exit the left-wing state (read here & here).
The studio could move at least some operations to the Tennessee capital within two to three years, according to the report. No relocation has been announced, but the search raises the risk that California could lose a major Hollywood studio headquarters. Such a loss would deepen concerns about the state's ability to retain businesses as its entertainment industry struggles and the exodus of businesses and residents shows no signs of stopping.
Starting in October, Paramount will owe roughly $7 million for each day the transaction remains incomplete, according to the report. That amounts to approximately $210 million over 30 days.
The Paramount-Warner Bros. deal faces an antitrust lawsuit from 12 states, including California, despite approval from the US Justice Department in June and regulators in more than 60 countries and jurisdictions. The trial is scheduled for March, with settlement talks in San Francisco next month.
California Attorney General Rob Bonta, who is leading the lawsuit, has called Paramount's relocation threat nothing more than "blackmail."
For Hollywood, the potential studio loss extends beyond another corporate exit; the exodus includes Chevron, Tesla, SpaceX, Oracle, Charles Schwab, and many others.
Tennessee has actively courted the studio. Nashville also has an existing Ellison family connection: Oracle, co-founded by Larry Ellison, announced plans to move its headquarters there in 2024. Larry Ellison is also financially backing his son David's Warner Bros. deal.
"I tried to warn you. LA is getting absolutely decimated by the insane communist wackos running California. Bob Bonta's jihad against Paramount is a death blow. What a corrupt piece of shit," Spencer Pratt wrote on X.