The entertainment company is withdrawing its operations from California due to political differences with the state's Democratic attorney general, leaving thousands unemployed
Paramount is preparing to leave California after state Democratic officials on the West Coast refused to withdraw a lawsuit aimed at blocking the company's merger with Warner Bros Discovery
The move is backed by the government of Donald Trump, which approved the merger in June and is defending Paramount in this legal dispute with the Democratic states. In total, there are 11 states governed by the anti-Trump opposition seeking to block the merger in court
In response, Paramount warned that California would either withdraw the lawsuit or it would leave the state. Governor Gavin Newsom's administration did not relent, and the entertainment company informed Los Angeles Mayor Karen Bass today that it plans to leave
The economic damage to California could be incalculable. The Democratic state could lose up to 58,000 jobs and more than $21 billion a year if Paramount departs. Additionally, the overall economic impact could range between $10.6 billion and $21.2 billion annually, while governments would stop collecting between $585 million and $1.17 billion a year in taxes
"Rob Bonta [California's Attorney General] wants to play the antitrust crusader while jobs in California hang by a thread. If Paramount leaves and thousands of jobs are lost with them, he won't be able to blame Hollywood," stated the chairwoman of the California Republican Party, Corrin Rankin
Texas, Tennessee, and Georgia — all states governed by Republicans — are the destinations that Paramount is considering for establishing its headquarters. In fact, the Hollywood Reporter reported a few hours ago that the company scheduled a meeting with Texas Lieutenant Governor Dan Patrick, and that Paramount's CEO, David Ellison, has already met with the politician
Paramount is living its last days in California territory
