Paramount’s board has approved relocation plans proposed by CEO David Ellison that could include selling the studio’s 65-acre Hollywood lot and, if its merger with Warner Bros. Discovery succeeds, the larger Warner Bros. campus in Burbank, according to The LA Times citing people familiar with the matter.
The sales would generate revenue to help cover merger costs, one of the sources said. Ellison shared the concept with his executive leadership team last Wednesday but indicated his preference was to remain in California, the people said.
The sudden relocation proposal has further unsettled Hollywood, already reeling from thousands of job losses in recent years. California Attorney General Rob Bonta condemned the strategy in a statement, calling it “another attempt to blackmail the state into letting an illegal deal through.”
The pivot reflects Paramount’s efforts to strengthen its legal position and secure financing for the deal approved by Warner Bros. Discovery shareholders in April. The company is also mindful of potential shifts in Washington if Democrats regain control of Congress in November, which could intensify scrutiny from key lawmakers.
On Wednesday, Rep. Jamie Raskin (D-Md.), who could chair the House Judiciary Committee, sent a letter to Ellison seeking answers to “questions about your Donald Trump-enabled shopping spree to consolidate news organizations, movie studios, cable channels, and streaming services.”
Paramount declined to comment.