Paramount Studio Leaving California
Posted: Wed Sep 16, 2026 3:39 pm
L.A. and State Officials Say Studio Leaving California
What officials have been told
According to reporting sourced through TMZ and cited in The Post Millennial, both:
The Los Angeles Mayor’s Office, and
The California Attorney General’s Office
have been informed that Paramount is preparing to announce it is leaving California. The announcement was reportedly expected earlier in the week but has been delayed.
This aligns with separate reporting from Variety showing Paramount’s leadership threatening to relocate operations out of California starting October 1 if the states blocking the Paramount–Warner Bros. Discovery merger refuse to negotiate a settlement.
Why Paramount is threatening to leave
Two overlapping pressures are driving the move:
1. The antitrust lawsuit blocking the Paramount–WBD merger
Twelve states are suing to stop the merger. Paramount argues the delay could cost it $1.88 billion, and the DOJ has sided with Paramount in demanding those states post a bond to cover potential damages.
2. A massive financial penalty starting October 1
If the merger isn’t resolved by Sept. 30, Paramount begins paying $7 million per day to WBD shareholders — a “ticking fee” that could reach $1.3 billion by the time the trial begins in March 2027.
Paramount CEO David Ellison told senior executives that relocating out of California is necessary to cut costs if the fee kicks in. The board has already approved the move.
How this fits the broader trend
California is already losing major productions due to tax‑credit limitations:
American Idol is moving from L.A. to Atlanta.
Shark Tank, Lego Masters, The Masked Singer, and multiple game shows have left for Georgia or New Jersey.
But Paramount leaving would be orders of magnitude larger — a full studio exit rather than a single show.
Bottom line
L.A. and California officials have been told Paramount is preparing to announce its departure from the state, driven by the stalled merger, looming financial penalties, and frustration with California’s regulatory posture.
This would be one of the most consequential studio relocations in modern Hollywood history.
What officials have been told
According to reporting sourced through TMZ and cited in The Post Millennial, both:
The Los Angeles Mayor’s Office, and
The California Attorney General’s Office
have been informed that Paramount is preparing to announce it is leaving California. The announcement was reportedly expected earlier in the week but has been delayed.
This aligns with separate reporting from Variety showing Paramount’s leadership threatening to relocate operations out of California starting October 1 if the states blocking the Paramount–Warner Bros. Discovery merger refuse to negotiate a settlement.
Why Paramount is threatening to leaveTwo overlapping pressures are driving the move:
1. The antitrust lawsuit blocking the Paramount–WBD merger
Twelve states are suing to stop the merger. Paramount argues the delay could cost it $1.88 billion, and the DOJ has sided with Paramount in demanding those states post a bond to cover potential damages.
2. A massive financial penalty starting October 1
If the merger isn’t resolved by Sept. 30, Paramount begins paying $7 million per day to WBD shareholders — a “ticking fee” that could reach $1.3 billion by the time the trial begins in March 2027.
Paramount CEO David Ellison told senior executives that relocating out of California is necessary to cut costs if the fee kicks in. The board has already approved the move.
How this fits the broader trendCalifornia is already losing major productions due to tax‑credit limitations:
American Idol is moving from L.A. to Atlanta.
Shark Tank, Lego Masters, The Masked Singer, and multiple game shows have left for Georgia or New Jersey.
But Paramount leaving would be orders of magnitude larger — a full studio exit rather than a single show.
Bottom lineL.A. and California officials have been told Paramount is preparing to announce its departure from the state, driven by the stalled merger, looming financial penalties, and frustration with California’s regulatory posture.
This would be one of the most consequential studio relocations in modern Hollywood history.