Studio That Helped Build Hollywood Considers Leaving California Due to Actions of Gavin Newsom Admin
California cannot seem to stop the bleeding that is the exodus from this once-alluring state.
The state’s history is quite literally tied to its potential to bring wealth and prosperity to those who were willing to make the trip during the Gold Rush.
Whereas prospectors, businessmen, and railroad workers from overseas once rushed into California, now the state is seeing more and more people rushing out.
On Tuesday, Politico reported that Paramount might join them.
Paramount Skydance, according to one of their lawyers, may choose a different state as their headquarters because of state Attorney General Rob Bonta’s lawsuit to block the company from buying Warner Brothers Discovery.
Chief Legal Officer Makan Delrahim said Paramount Skydance CEO David Ellison is “committed to California,” but “there is a point at which you have a fiduciary duty to shareholders.”
Buying Warner Brothers Discovery would put CNN and CBS under the same roof, something state Democrats aren’t happy about. Delrahim opined that leaving CNN out of the deal would be the “saddest day in this country” if “state powers” were to meddle in the deal.
A separate report by Politico noted the lawsuit cites antitrust legislation and is filed by Bonta and 11 other state attorneys general. The lawsuit is scheduled for trial in March, but there’s another massive problem for Paramount: the longer the lawsuit lingers, the more expensive the merger becomes.
Beginning in October, Paramount owes Warner Brothers Discovery $7 million a day for each day the deal is not done. If it’s not completed by June 1, 2027, Paramount may owe the company a $7 billion termination fee.
The Hollywood Reporter noted that if the antitrust suit is not settled by October, Ellison may pack up for Texas, Tennessee, or Georgia.
The outlet said that even if the merger happens, a move is not ruled out.
In a letter to lawmakers, Ellison came off as more agreeable to Paramount’s current home. “Paramount has deep roots in Southern California. My vision is to stay true to our roots,” he wrote.
California Democratic Sen. Adam Schiff wrote that his “north star” was to “protect the jobs of the hardworking Californians,” saying, “I hope that Paramount will stick to their commitments to build a stronger Hollywood and keep production here.”
Paramount has called the state home for 100 years, but that might not last long with Ellison’s comments in mind.
The company won’t be alone in a place like Texas.
In July 2024, Tesla and X owner Elon Musk announced his departure from California in reaction to a new gender ideology statute signed into law by Democratic Gov. Gavin Newsom to keep “school districts from enacting forced outing policies” and give “resources for parents and students to manage conversations about gender and identity privately,” according to Newsweek.
Podcaster, comedian, and commentator Joe Rogan left the state in 2020 amid COVID restrictions. KKTV reported that he felt no remorse in 2024, saying the state went “full communist.”
There are greener pastures.
Aside from the sentimental side of things, what’s keeping Ellison there?
That’s a question he needs to ask, and he doesn’t have much time before October.
Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. Advertise Today.
Truth and Accuracy
We are committed to truth and accuracy in all of our journalism. Read our editorial standards.
