California Attorney General Rob Bonta's attempt to derail Paramount's proposed $110 billion merger with Warner Bros. Discovery has reportedly prompted internal discussions about whether the company should move its business operations out of California.
According to Semafor’s sources, Paramount CEO David Ellison and his advisers are considering relocating the company's headquarters and redirecting much of its planned $30 billion in annual spending elsewhere if Bonta ultimately sues to block the deal.
Gee, I wonder who could have possibly leaked this veiled threat to Semafor...
California has already had to contend with several major corporations, including Chevron, Oracle, and Tesla, relocating their headquarters out of the state in recent years following disputes with regulators. The last thing the state needs is for one of the major Hollywood studios to leave as well.
Paramount has repeatedly attempted to reach an agreement with Bonta's office, reportedly offering legally binding commitments to produce 30 films per year, maintain a 45-day theatrical window followed by a 90-day streaming window, and keep both the Paramount and Warner Bros. studio lots operating in California.
According to sources, Paramount has grown increasingly frustrated with what it describes as Bonta's “unwillingness to engage.” The company argues that the combined entity would preserve and create jobs while investing roughly $30 billion annually in content at a time when film and television production has steadily migrated to other states and countries. Bonta, meanwhile, has publicly expressed concerns about potential job losses and higher prices resulting from the merger, although Paramount insists regulators around the world have largely concluded that the deal poses no meaningful antitrust concerns.
Regulators in other jurisdictions have reportedly cleared the Paramount-Warner Bros. Discovery transaction, and many within Ellison's circle believe Bonta's reluctance to negotiate is driven more by politics than by legitimate antitrust concerns.
Hey, given California's regulatory climate, Paramount moving out of the state is entirely plausible. It would be a devastating blow, especially after the departures of other major companies. I don't believe the threat to move is merely a negotiating tactic aimed at pressuring Bonta. If you're familiar with the Ellisons' history, you'll know this is an entirely credible threat, and the message being sent is unmistakable.
Beyond the fact that ‘Camp Miasma’ plays like a meta tribute to ‘80s horror slashers, it’s easy to understand why Schoenbrun would want a crack at the franchise.