Ellison-led Paramount clinches settlement with California AG, averting relocation threat
Paramount CEO David Ellison secured a settlement with California Attorney General Rob Bonta, allowing the Warner Bros. Discovery acquisition to proceed after intense political pressure.
Paramount Pictures, under CEO David Ellison, reached a settlement with California Attorney General Rob Bonta, clearing a major hurdle for its purchase of Warner Bros. Discovery. The agreement came after sustained political pressure from Gov. Gavin Newsom, Los Angeles Mayor Karen Bass and likely future governor Xavier Becerra, who warned that the merger could prompt Paramount to relocate to Nashville or Austin, taking up to 50,000 jobs.
Ellison and chief legal officer Makan Delrahim employed a range of tactics, including lobbying centrist Democrats, securing a $1.88 billion bond pledge, and enlisting Republican state AGs to seek a Supreme Court block, which ultimately forced prosecutors to respond. The settlement grants employment guarantees, minor guidelines for several outlets, and a pledge to continue shooting movies in California, while other AGs like William Tong and Tish James pressed for additional concessions. The deal was finalized on Sunday night and will be signed on Monday.
Why it matters
The settlement keeps a major media merger in California, preserving thousands of jobs and influencing the state's political and entertainment landscape.
How this story developed
- Sep 8 Paramount seeks $1.88 billion bond from states and WGA over Warner Bros. deal delay
- Sep 17 The Justice Department filed a statement of interest seeking a $1.88 billion bond from the states.
- Sep 21 A settlement with twelve states was reached, removing a key antitrust obstacle.
- Sep 21 Settlement adds film‑output quotas, a $300 million annual domestic production commitment, and an editorial independence board.
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