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Paramount’s threat to leave California ‘blackmail,’ says AG Bonta

August 11, 2026

By Hannah Miller | Bloomberg

California Attorney General Rob Bonta called reports that Paramount Skydance plans to leave the state if its top lawyer doesn’t settle a lawsuit challenging the company’s planned merger with Warner Bros. Discovery “blackmail’ in a post on social media Tuesday.

Paramount’s board approved a possible move from California as early as Oct. 1, according to a person familiar with the company’s plans.

Chief Executive Officer David Ellison told senior executives last week that the move would involve headquarters staff first but that he’s putting together a five-year plan that would shift most of the film and TV studio’s jobs to the new home, according to the person, who asked to not be identified because the internal deliberations aren’t public.

Also see: Writers Guild of America seeks to block Paramount’s buyout of Warner in latest merger challenge

The five-year plan could involve a sale of one of the two studio lots owned by Paramount and Warner Bros. in the Los Angeles area, if that merger ultimately goes through. The states being considered are Tennessee, Georgia, Texas and one other. The newsletter Puck and Variety reported earlier Tuesday on Paramount’s plans.

California and eleven other states with Democratic attorneys general sued to block the Warner Bros. deal last month. The suit alleges the $110 billion transaction would give the company unfair control of the movie and cable-TV businesses. A trial date has been set for March.

Paramount employed about 17,600 people at the end of last year, according to a public filing.

Paramount offers 30-film pledge

Paramount also agreed to sign contracts with major theater chains guaranteeing it will release 30 movies a year in cinemas if it acquires Warner Bros. Discovery, according to Bloomberg sources.

Paramount has offered three-year agreements to AMC Entertainment Holdings and Cineworld Group’s Regal Cinemas, the world’s two largest theater chains, requiring it to release the films exclusively in theaters for at least 45 days, according to the people, who asked to not be identified because the agreements are private. The films would also not be available to stream online for at least 90 days.

Ellison has already made similar claims in public, but the written commitments provide assurances that he won’t change his mind later. If Paramount doesn’t fulfill its obligation, it would face penalties, according to the people.

The agreements could provide a template for settling the antitrust lawsuit brought by 12 states to try to stop Paramount’s $110 billion acquisition of Warner Bros. Paramount has already tried to negotiate a settlement with California Attorney General Rob Bonta, who is leading the lawsuit by the states.

The states claim the deal will harm the movie business because Ellison would wield too much control and reduce output, costing people jobs. The merger would place two of Hollywood’s oldest and largest movie studios, Paramount and Warner Bros., under one roof. A trial is scheduled for March.

The merger has divided the cinema industry. AMC and Regal came out this past week to back Ellison. AMC CEO Adam Aron published an op-ed in the Hollywood trade outlet Variety, while Regal CEO Eduardo Acuna said in a separate statement that a long court fight would be bad for the movie business.

Cinema United, a lobbying group that represents theater chains big and small, remains opposed to the deal. Ellison and his inner circle have been talking to the theater chains for months, seeking to secure their support.

— Lucas Shaw and Thomas Buckley at Bloomberg

Orange County Register

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Paramount’s threat to leave California ‘blackmail,’ says AG Bonta

Paramount offers 30-film pledge

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