Paramount has formally notified California officials of plans to leave the state, according to The Wrap. No departure date has been set. A scheduled public announcement was postponed from earlier this week.
Nashville and Atlanta are among the destinations being considered, according to The Wrap. Texas has also indicated interest.
The exit is tied to the antitrust battle surrounding Paramount's $110 billion merger with Warner Bros. Discovery. California Attorney General Rob Bonta has sued to block the deal. On October 1, Paramount begins accruing a $7 million daily ticking fee if the merger remains unclosed. Settlement talks are scheduled for October 14 and 15. An antitrust trial is set for March 2027 if no agreement is reached.
Bonta's office said in a statement to The Wrap: "What Paramount decides to do is Paramount's choice alone. We'll continue to apply the law without fear or favor." Los Angeles Mayor Karen Bass said she would "fight like hell" to keep the studio in the city.
A study by the Los Angeles County Economic Development Corporation, leaked to Politico, found that a full relocation would cost California between 28,990 and 57,980 jobs and between $10.6 billion and $21.2 billion in annual economic output. Settlement talks begin October 14. Whether this is a pressure tactic or a genuine departure becomes clearer then.