Could Tennessee become America’s movie capital? That scenario is on the table. Paramount chief David Ellison is threatening to move the studio’s headquarters out of California, a bid to force the state and its partners to end their lawsuit challenging Paramount’s planned merger with Warner Bros. Discovery.
The vow to abandon Hollywood is “obvious brinksmanship” but also “not that far-fetched,” said The Hollywood Reporter. Paramount really could leave the “entertainment capital of the world” for Tennessee, Texas or Georgia. Still, Ellison is in the “talent business,” and a critical mass of creative TV and movie talent is “largely based in Los Angeles and New York.” Ellison’s threat is an “attempt to blackmail the regulators,” California Attorney General Rob Bonta said at a Politico event.
The antimerger lawsuit led by Bonta and a dozen other Democratic attorneys general could “make California’s Hollywood exit even worse,” Tosin Akintola said at Reason. An already-weakened Hollywood TV and movie production system “stands to lose the most should the merger collapse.” If it happens, the state could “lose $500 million annually in corporate tax revenue” as well as “thousands” of Paramount jobs. Bonta is working against the “economic interests” of his state in order to “bolster his bona fides as an antitrust crusader.”
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“No one really wants to move from Beverly Hills to Nashville,” Sharon Waxman said at The New York Times. But the move would perhaps fulfill a “dream from the right to create an alternative to left-leaning Hollywood.” Tennessee, after all, is already home to the country music industry and has long been seen as a potential “Hollywood for conservatives.” Business needs might win out over ideology, however, and a lawsuit settlement may come before a dramatic departure. “Certainly no one wants this chaos.”
Ellison’s ultimatum is “more a temper tantrum than a master plan,” Brian Lowry said at Talking Points Memo. The son of billionaire Oracle chief Larry Ellison appears to be a “guy who wanted to become a movie mogul” and now finds his ambitions complicated. His legacy could end up being the “wreckage that the studio’s wild ride leaves in its wake.”
What next?
A big deadline looms. Paramount must pay a $7 million per day “ticking fee” to Warner Bros. shareholders if the deal is not complete by Oct. 1, said Deadline. The “better path” would be a settlement to resolve the case before the antitrust trial, the studio said in a public statement.
Ellison is upping the stakes. Paramount this week asked a court to order California and the other plaintiffs in the antitrust suit to “cover the costs of the delay created by their lawsuit” with a $1.88 billion bond, said The New York Times. Delaying the “merger carries substantial and quantifiable financial consequences,” Paramount said in a statement.
