Paramount’s board of directors has reportedly approved a plan to move its entire operation from California to Texas as the Gold State continues its full-frontal legal assault on the company over its plans to acquire Warner Bros. Discovery.
The possible move comes as California’s radical, left-wing Attorney General, Democrat Rob Bonta, is leading a 12-state coalition in a lawsuit to try and torpedo Paramount’s purchase of Warner’s, a legal battle that has Paramount looking for the exits.
Now, it is reported that Paramount is taking a serious look at states including Tennessee, Georgia, or Texas, as a new home for the studio, the San Francisco Chronicle is reporting.
Officials in Texas are welcoming the studio with open arms.
“Paramount already maintains major production facilities in Texas and has filmed numerous successful productions in Texas over the years,” Republican Gov. Gregg Abbott’s press secretary, told The New York Post. “Companies that leave high-tax, high-regulation states like California will find opportunity and succeed here.”
The California AG is leading a coalition of 12 blue states to try and stop the proposed merger, claiming that the $111 billion plan is detrimental to the entertainment industry and the freedom of choice of consumers. And with Bonta’s pressure rising, a judge recently ordered Paramount to pause its acquisition plans as Bonta’s lawsuit lumber through the courts.
But while the studio giant agreed to put a halt to its plans temporarily, it also faces a serious cost to delays. Paramount had pledged to pay shareholders a “ticking fee” compensation amounting to about $7 million per day if the deal isn’t closed by September 30. That date is only a bit over a month away at this point, so the clock is ticking.
Beyond California, states joining Monday’s lawsuit include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. And others — including the Writers Guild of America — are also suing to block the merger.
Still, Bonta is also facing pressures of his own. Several high-profile people and organizations are starting to urge Bonta to settle his lawsuit and let Paramount’s merger get on its way.
Both the Director’s Guild of America (DGA) and IATSE, have urged Bonta to settle his lawsuit against Paramount’s acquisition of Warner Bros. and have published an open letter urging the AG to wrap things up.
“While we have been consistent in our view that mergers, such as this one, historically offer few benefits to workers, we are also particularly concerned about the negative impact a delay in the decision regarding the proposed merger will have on our members and the industry at large,” the two unions wrote early this month.
Democrat Gov. Newsom also urged Bonta to settle his lawfare against Paramount. Newsome is afraid that killing the merger will end up costing the entertainment industry even more jobs and that will make him look bad in his quest for the 2028 Democrat Party nod for president.
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