Paramount’s new chief, David Ellison, is threatening to move his studio out of California if the state’s attorney general doesn’t come to the table to resolve the high-stakes antitrust lawsuit. The lawsuit, led by California AG Rob Bonta, aims to block Paramount’s $111 billion merger with Warner Bros. Discovery.

Merger Details

The merger would be a historic deal, merging two major Hollywood studios under one corporate umbrella, including all of their television networks, such as CBS and CNN. Critics of the deal believe it would crush the entertainment industry and lead to mass layoffs.

Ellison has developed a five-year plan to relocate the vast majority of jobs out of California while maintaining a footprint in Hollywood. He is in contact with multiple states, including Georgia, Tennessee, and Texas, as potential new locations for the studio.

Antitrust Lawsuit

Bonta’s lawsuit claims the merger would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences. The lawsuit alleges the merger violates Section 7 of the Clayton Act, which holds that mergers that may substantially lessen competition or tend to create a monopoly are illegal.

Ellison remains convinced that Paramount would be victorious in court, but the antitrust trial is not scheduled until March 2027. In the meantime, Paramount will have to pay Warner Bros. Discovery a multimillion-dollar ‘ticking fee’ if the merger stays in limbo.

Original reporting: Fox News (HLL/CB) — read the source article.