Leaked study shows Paramount exit could cost California $10.6B–$21.2B annually
Economic report commissioned by Paramount itself estimates devastating job and output losses if the studio leaves over an antitrust lawsuit.
Part of a larger narrative
Paramount-Skydance Merger Battle
- Paramount Weighs Elon Musk as Equity Investor in Warner Bros. Deal
- Paramount Settles State Lawsuit, Clearing $110bn Warner Bros. Merger
- Paramount Skydance settles states' suit, clearing $81B Warner Bros. Discovery merger
- Leaked study shows Paramount exit could cost California $10.6B–$21.2B annuallyyou are here
What to know
- A confidential economic study commissioned by Paramount itself projects $10.6–$21.2 billion in annual economic losses for California if the studio relocates, along with 28,990–57,980 permanent job losses.
- These losses are contingent on Paramount and California failing to reach a settlement by October 1, when a $7 million per day ticking fee begins.
- Paramount CEO David Ellison has warned he will move the company out of state if AG Rob Bonta won't negotiate; the company is eyeing Texas, Georgia, or Tennessee.
- The economic study includes multiplier effects across all California industries, not just entertainment; the report remains confidential and subject to change based on settlement outcomes.
“It should be emphasized that these estimated job losses include direct, indirect, and induced jobs, capturing the ripple effects through Paramount's supply chains in California as well as the economic activity of household spending.”
Los Angeles County Economic Development Corporation, Report author · TheWrap ↗
David Ellison Paramount Skydance CEO
Rob Bonta California Attorney GeneralParamount Skydance Entertainment company facing antitrust lawsuitWarner Bros. Discovery Proposed merger partner
How it unfolded 2 developments, newest first · click a bar or a number to jump articlesposts
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TheWrap reports leaked study details and settlement context
TheWrap publishes the full leaked study, emphasizing that job-loss estimates include ripple effects through Paramount's supply chains and household spending across all California industries. The report notes that any settlement commitments could change the projections. A judge will decide on a $1.9 billion bond request at a September 24 hearing.
“his goal was to keep the company's 30,000 jobs in Southern California but cautioned that if Bonta won't negotiate a settlement by the time the company's $7 million per day ticking fee kicks in, he will be moving standalone Paramount or the combined Paramount-WBD out of state regardless of the outcome…”
— David Ellison, Paramount Skydance CEO · source -
4 outlets Paramount’s relocation to result in $10 billion to $20 billion economic loss in California: Report
first by Washington Examiner, 11d ago · also The Wrap, TheWrap, Seeking Alpha
2 more headlines
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first by The Hollywood Reporter, 11d ago · also Yahoo! Finance Canada
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BREAKING: Paramount to leave California, per TMZ
2 more of the top 3 · 20 posts in this stretch
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You keep coming back the studio side only. Of course the studios are gonna take free money. Any business would. The states and cities that keep offering the credits aren’t getting any return. Hence why GA, Canada and the UK are rethinking them. Do you really want the government paying studios to film in their state? Because that’s what’s…
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Sources: Paramount told the offices of LA Mayor Karen Bass and CA AG Rob Bonta the company would announce Tuesday it was leaving the state; no announcement came (TMZ.com) https://www. tmz.com/2026/09/16/paramount-i s-about-to-leave-california/ http:// mediagazer.com/260916/p17#a260 916p17
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Economic losses contingent on failed settlement by October 1 deadline
Washington Examiner reports that the $10.6–$21.2 billion in annual economic losses would only occur if Paramount and California fail to reach a negotiated settlement by October 1. The company is considering relocation to Texas, Georgia, or Tennessee. Both parties are scheduled to meet with a judge via Zoom on Friday to discuss scheduling a settlement conference.
“It just becomes a very calculated, very complicated calculus, and the timing is what raises the question of it all. It cheapens the threat almost to me because then you're just doing this for political ploy.”
— Abiel Garcia -
background
Paramount-commissioned study projects $10.6B–$21.2B annual loss if studio exits — A confidential economic impact report by the Los Angeles County Economic Development Corporation, dated September 10 and obtained by Politico, estimates that if Paramount relocates entirely out of California, the state would suffer permanent losses of 28,990–57,980 full-time jobs and $10.6–$21.2 billion in annual economic output. The report also notes that if Paramount releases 30 theatrical films annually post-merger, it would generate $377.7 million to $1.01 billion in economic output for California over five years.
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background
CEO Ellison warns of relocation if settlement talks stall — Paramount Skydance CEO David Ellison holds a meeting with his 12-member executive leadership team and warns that if AG Rob Bonta won't negotiate a settlement before the $7 million per day ticking fee begins on October 1, he will move standalone Paramount or the combined Paramount-WBD out of state.
Also covered reported alongside — the timeline has no entry for these yet
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first by Deadline, 7d ago · also TheWrap, The Wrap
3 more headlines
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3 outlets Paramount’s threat to flee California could cost state nearly 58K jobs, $21B a year: leaked report
first by NY Post, 9d ago · also ZeroHedge, Breitbart
2 more headlines
- Paramount Threatens California Exit That Could Cost State Billions ZeroHedge · 9d ago
- Study: Paramount Leaving California Could Cost State 57,980 Jobs, $21.2 Billion Breitbart · 9d ago
and 4 smaller pieces
What people are saying 17 voices from 2 sites · best of 20 · verbatim
- Sep 17
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This was always in the works. A decision like this doesn’t happen overnight. So they lied (by omission) the whole time. Imagine if no one opposed the merger, it went thru, and then they just left. People would be rightfully furious.
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You sure? Especially to a corporate rats that’s closely aligned to the pedophile? Have you met Canadians nowadays? 😂😂
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There was a lot of tech stuff in Texas for many years. That's all gone now, moved to Asia.
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Why are you insisting that productive tax paying employers leave the state? Are you truly that sheltered in an ivory tower or so broken in your basement of unmet expectations that you cant see how this doesn't yield the best outcomes.
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The amount of people in saw in the comments on Instagram in support of a monopoly is disturbing.
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Georgia immediately lost 90% of their year on year filming once they removed the tax incentives. They were losing money on the deal to incentivize investment, but stopped because it wasn't worth it. It's an uphill battle without all of the tertiary industries and ecosystem set up. They're also being run by an inexperienced man-child with zero…
- Sep 16
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No doubt. I hate Larry but his fail-son can only bumble about throwing his dad’s money around. Of course, he will be filthy rich regardless of success or failure. So why would he care who suffers in the course of him trying to finally gain his father’s love and approval.
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who said they were liberal because of state lines? they aren’t liberal because of their proximity to hollywood either.. you say this like we don’t already have examples of things moving to texas and becoming less liberal, not more ( see any comedian that moved to austin ). it can go either way but is more likely to go one way
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Ok bye enjoy Texas That is unless this is the most obvious bluff that it appears to be
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That's what the said about the stand up comedy scene. And while it has grown. It's still not NYC or LA for stand up comedy.
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The article mentions, "Even without a move, a merged company would likely see layoffs as it looks to deliver shareholders $6 billion in promised cost savings." So those 5000+ jobs could stay if the merger goes through... only to be promptly gone in layoffs.
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Austin Texas is fun and a week there can convince people moving out there might not be so bad. But then you stay there for more than a few months and you start to get reminded that every place has its problems and republicans controlled states have another layer of fuckery that goes on.
- Sep 15
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By your definition they will always be moving what they can, which exposes the lack of insight in your original comment. I’ve heard chuds say some version of this for decades, but all it takes is a quick check of property values to dismiss the notion entirely
- Sep 13
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neither the story or the study examines what happens if the pre-merger promises are complete bullshit and the deal ends like most of them do: higher prices and thousands of layoffs to pay off debt Paramount Leaving California C...
- Sep 12
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A shitton. They just label it as synergies to hide what they’re doing. That term means layoffs essentially.
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Yeah they just paid for a report to give them the worst outcome scenario to put public pressure on the state. California needs to have a backbone and ignore all the noise.
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Thank goodness we have a president willing to put the public first when dealing with corporate mergers. Was a little worried for a minute there.