LOS ANGELES, September 17 — Paramount Global is preparing plans to exit California as it fights a coalition of Democratic-led states over its proposed $111 billion merger with Warner Bros. Discovery.
The company owns Paramount Pictures, CBS, MTV, Nickelodeon and the Paramount+ streaming service. Its historic studio lot in Hollywood has served as its headquarters base for decades. A departure would be one of the most significant corporate relocations in the modern entertainment industry.
The antitrust fight centers on the combination of Paramount and Warner Bros. Discovery, the parent company of Warner Bros. Pictures, HBO, CNN and the Max streaming service. The deal is valued at $111 billion. It would consolidate two legacy Hollywood studios and a large share of the streaming and cable news market into a single entity. A group of Democratic state attorneys general has challenged or signaled opposition to the transaction, arguing it would reduce competition in film production, television and streaming.
The exact roster of states involved and the specific legal filings have not been fully detailed. No court ruling has been reported.
The $111 billion figure places the deal among the largest media transactions ever proposed. AT&T’s $85 billion acquisition of Time Warner in 2018 was litigated and approved after a court ruling that year. Disney’s $71 billion purchase of most 21st Century Fox assets closed in 2019.
Paramount Global was formed in 2019 through the recombination of CBS Corporation and Viacom, both of which had been split from the original Viacom in 2006. Its namesake studio, Paramount Pictures, was founded in 1912 and is the oldest surviving American film studio. Warner Bros. dates to 1923. Warner Bros. Discovery was created in 2022 when AT&T spun off WarnerMedia and merged it with Discovery, Inc.
California has been the traditional home of the major studios, but the state has faced growing competition from Georgia, New York, New Jersey and other jurisdictions offering tax incentives. Paramount’s potential exit would follow other entertainment and tech companies that have shifted operations or headquarters out of California in recent years. The company maintains significant production facilities in Los Angeles, including the Paramount lot, a designated historic landmark.
The timeline for any California exit, the specifics of the antitrust challenge and the ultimate fate of the merger all remain uncertain. No closing date or regulatory decision has been announced.
