Tennessee Courts Paramount Skydance HQ With 7% Tax Pitch as $111 Billion Merger Faces California Fight
Updated
Updated · Los Angeles Times · Jul 18
Tennessee Courts Paramount Skydance HQ With 7% Tax Pitch as $111 Billion Merger Faces California Fight
2 articles · Updated · Los Angeles Times · Jul 18
Summary
A July 2 letter from Tennessee Deputy Gov. Stuart McWhorter urged Paramount Skydance to move its Hollywood headquarters to Tennessee, casting the state as a friendlier base during California’s challenge to the Warner Bros. Discovery deal.
The pitch leans on Tennessee’s business incentives — no state income or property tax, a 7% sales tax, relocation grants and training credits — plus logistics advantages including seven interstates, six Class 1 rail lines and Memphis’ cargo hub.
California Atty. Gen. Rob Bonta has joined 12 state attorneys general seeking to block the $111 billion takeover, even after the U.S. Justice Department approved the merger last month, making a restraining-order fight the next key test.
Tennessee framed the offer with examples of companies that already left California, including Oracle’s planned Nashville world headquarters, Nissan’s 2005 move to Franklin, Mitsubishi’s 2019 relocation and CKE’s 2018 shift.
The outreach underscores a broader contest for corporate headquarters as California loses ground to lower-tax states; Texas overtook it in June for the most Fortune 500 companies.
Beyond a legal fight over one merger, how can California effectively counter the exodus of its major corporations to business-friendly states?
As companies chase tax breaks in states like Tennessee, what are the hidden costs of losing experienced employees who refuse to relocate?
With millions in public grants given to corporations, what guarantees do Tennessee taxpayers have that promised jobs and economic benefits will actually materialize?