Paramount Seriously Considering Leaving California Amid Merger Dispute, Mayor Bass Vows to Fight

Paramount Pictures is "deadly serious" about potentially leaving California, a move that could have significant economic repercussions for the state, as it engages in a legal battle over its proposed $111 billion merger with Warner Bros. Discovery. The studio, which has been a fixture in Hollywood for over a century, reportedly came close to announcing a departure this week but paused the decision and has returned to negotiations.

Los Angeles Mayor Karen Bass has publicly stated her commitment to protecting jobs within the city, particularly those in the entertainment industry. "The entertainment industry built this city, and LA must remain the entertainment capital of the world," a spokesperson for Bass told Deadline. "That means fighting to keep productions, and the good-paying union jobs they create, right here."

The potential exodus stems from antitrust litigation spearheaded by California Attorney General Rob Bonta and 12 other states, which aims to block the merger. A leaked report previously warned that a departure by Paramount could cost California up to 58,000 jobs, $21 billion in economic output, and as much as $1.17 billion in annual tax revenue.

Paramount is the last major studio to be based in Hollywood. The reports of its potential departure have intensified efforts by city and state officials to retain the company. While Bass' office has not confirmed direct involvement in ongoing negotiations, they emphasized their focus on safeguarding L.A.'s entertainment jobs.

A spokesperson for Attorney General Bonta stated that while Paramount's decision is its own, the state remains "open to coming to the table for good faith discussions" and will continue to uphold the law. The future of Paramount's operations in California remains uncertain, contingent on the resolution of the ongoing merger litigation and subsequent negotiations.