California could suffer a devastating economic blow if Paramount carries out its threat to leave the state amid California Attorney General Rob Bonta’s challenge to its planned Warner Bros. Discovery acquisition. New projections warn that the fallout could include nearly 58,000 lost jobs and more than $21 billion in lost annual economic output. The same analysis predicts that California would receive substantial economic benefits if the merger proceeds and Paramount fulfills its promised production commitments.
The situation hinges on Paramount chief David Ellison’s threat to relocate the entertainment giant if the multistate antitrust lawsuit led by Bonta succeeds in blocking the Warner Bros. Discovery deal. Tennessee was identified as one possible destination for the company’s operations. Such a move would pull studio activity, production spending, vendor contracts, and employee spending out of California as the state struggles to keep film and television projects from moving to cheaper locations.
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