Paramount Threatens Relocation Over $110 Billion Merger with Warner Bros. Discovery
Paramount Skydance CEO David Ellison has warned that the company may relocate from California if it fails to reach a settlement by October 14 regarding an antitrust lawsuit over its proposed $110 billion acquisition of Warner Bros. Discovery (WBD). The deal, which would be Hollywood's largest merger in history, is being challenged by California Attorney General Rob Bonta and a coalition of state attorneys general who argue it would eliminate competition between two major film studios and basic cable providers. The lawsuit seeks structural concessions such as divestitures to preserve market competition. In contrast, Ellison has offered behavioral promises instead of selling off business units. The October 14 meeting will determine if there is a compromise that satisfies both sides. Meanwhile, Paramount's stock (PSKY) continues to underperform, down nearly 39% over the past year. The merger would combine two major players in film and cable programming amid an industry struggling with streaming fragmentation and declining theater attendance.
Topics: California AG Hollywood Paramount Skydance Relocation Threat Warner Bros. Discovery