Paramount CEO threatens studio relocation over California merger lawsuit
Paramount chief David Ellison warned he will move the studio out of California unless the state drops its case against the Paramount-Warner merger, a leak suggests could cost up to 60,000 jobs.
Paramount Pictures’ chief David Ellison has warned California officials that the studio will pack up and leave the state unless Attorney General Rob Bonta withdraws his lawsuit aimed at stopping the Paramount-Warner merger. A confidential report from the Los Angeles Economic Development Corporation, projects the loss of roughly 60,000 jobs and warns it could encourage other major studios to follow suit. The warning revives memories of a 1934 crisis when studios threatened to abandon California over the election of socialist governor Upton Sinclair.
Back then, industry leaders feared state-run production and income caps would cripple Hollywood. Today, Ellison’s ultimatum underscores the ongoing clash between the film industry’s economic interests and California’s political and legal pressures.
Why it matters
A studio relocation could reshape the U.S. film industry and affect tens of thousands of jobs.
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.
In this story
Related stories
6 in this thread