Paramount Threatens to Relocate Over $110 Billion Merger with Warner Bros. Discovery
Paramount Skydance (PSKY) CEO David Ellison has warned that the company may relocate out of California if it fails to reach a settlement by October 14 regarding an antitrust lawsuit filed by California Attorney General Rob Bonta over its $110 billion merger with Warner Bros. Discovery (WBD). The proposed deal, which would be Hollywood’s largest in history, has drawn regulatory scrutiny due to concerns about reduced competition in theatrical films and basic cable programming. The state-led coalition argues that the merged entity could control roughly one-third of U.S. theatrical movies and basic cable content, potentially stifling creative competition between two historically independent studios. While Bonta seeks structural concessions like divesting business units, Ellison has offered behavioral commitments instead, such as releasing at least 30 films annually. The uncertainty surrounding the merger is reflected in PSKY’s stock performance: it's down nearly 40% year-to-date and over 19% since January of this year. The October meeting will determine whether a compromise can be reached to avoid relocation or legal blockage.
