Paramount threatens to exit California, sparking antitrust showdown and political fallout

David Ellison, chief executive of Paramount Skydance, reportedly warned that the studio will publicly announce a relocation from California unless its antitrust case with the state is resolved, a move that has drawn sharp reactions from Attorney General Rob Bonta and Los Angeles Mayor Karen Bass. Bonta, while preferring a settlement, indicated willingness to go to trial and described Ellison’s tactics as erratic. Governor Gavin Newsom is said to view the threat with limited concern.

A court-supervised settlement conference is scheduled for October 14-15, and political figures, including mayoral candidate Nithya Raman, are framing the dispute as a key election issue. Industry leaders largely view the threat as negotiation leverage rather than a genuine plan, noting ongoing talks and the potential economic ripple effects if the studio were to leave. Meanwhile, Ellison has been courted by officials in Tennessee and Texas, and his father Larry Ellison has previously relocated corporate operations out of California.