Paramount Global CEO David Ellison is exploring the possibility of moving CBS News operations out of New York City as the company faces intensifying legal challenges from state attorneys general. This potential relocation is being considered as a negotiating tactic in the company's battle with California Attorney General Rob Bonta and New York Attorney General Letitia James, sources close to Paramount told The Post.
Ellison's consideration of moving CBS News from New York City comes as his legal fight with state officials escalates. He is also reportedly planning to move Paramount's Hollywood studio operations out of California if Bonta does not agree to settlement discussions regarding an antitrust case. These potential moves represent a significant shift for the media landscape and could impact a substantial number of jobs.
A person familiar with Paramount's intentions described the possible relocation of news operations to Atlanta, where CNN is based, as a contingency plan. Such a move could also involve selling the CBS News broadcast center in Manhattan, which is estimated to be worth a couple of billion dollars.
Paramount insiders believe Bonta is seeking a spin-off of CNN, an asset of Warner Bros. Discovery, before approving the Paramount-Warner Bros. Discovery deal. However, Ellison has not agreed to this demand. Despite the current impasse, those within Paramount remain optimistic about reaching a settlement with Bonta, with Ellison aiming for discussions to begin by October 1. After this date, Paramount would face a penalty of $7 million per day until the merger is finalized.
Currently, no formal negotiations are underway, and both parties remain at odds over potential concessions. Paramount has not yet responded to requests for comment. The company's optimism, however, is fueled by mounting pressure within the Democratic Party to keep Hollywood jobs in their current locations and avoid a backlash from a potential exodus of studio operations.
Ellison is seeking to gain leverage in his dispute with Bonta and James. The extent to which he is prepared to move production operations from California or New York remains unclear. California AG Bonta has characterized these threats as "blackmail."