Updated
Updated · Hollywood Reporter · Jul 14
Tennessee Courts Paramount Headquarters as California Sues to Block $111 Billion WBD Deal
Updated
Updated · Hollywood Reporter · Jul 14

Tennessee Courts Paramount Headquarters as California Sues to Block $111 Billion WBD Deal

3 articles · Updated · Hollywood Reporter · Jul 14

Summary

  • A July 2 letter from Tennessee Deputy Governor Stuart McWhorter urged David Ellison to move Paramount’s corporate headquarters to the state as California prepared its challenge to the Warner Bros. Discovery takeover.
  • The outreach landed as a 12-state attorneys general coalition led by California sued Monday to stop the $111 billion deal, after Paramount’s offer to make 30 films a year with a 45-day theatrical window failed to avert the filing.
  • Paramount confirmed the letter’s authenticity, and a longtime Ellison adviser said “everything is on the table,” even though the company only moved its headquarters from New York last year.
  • Any relocation could deepen pressure on California production, with Los Angeles filming already near historic lows and Paramount controlling about $30 billion in spending that could shift to Tennessee, New York, New Jersey, the U.K. or Canada.
  • Tennessee’s pitch is strengthened by Ellison’s personal ties to the state, Oracle’s planned Nashville campus and co-CEO Clay Magouyrk’s residence there, while a move would also return Warner Bros. Discovery operations to a former base in Tennessee.

Insights

With federal approval secured, can California's lawsuit actually stop the $111 billion Paramount-Warner merger?
Could Paramount's exit from California trigger a final collapse for the struggling Hollywood production industry?