Paramount/Skydance to California: Drop Dead

Paramount is being bullied by California AG Rob Bonta in a lawsuit 12 other left-wing AGs have joined to stop Paramount's acquisition of Warner Bros. As I've mentioned, they are animated by the all-but-admitted position that conservatives just aren't allowed to own major media companies, or just non-gonzo-liberals, as David Ellison seems to be. They are blocking the completion of the purchase so that the company they prefer to take over Warner Bros., the super-left-wing Netflix, can buy it instead.

Which shows their complaints about anti-trust and "reducing competition in the industry" to be, as usual, communist lies.

This is a particularly bad hostage situation for Paramount, who, as part of its offer to buy Warner Bros,, promised to pay Discovery Warner shareholders seven million dollars per day if it was not able to complete the purchase by October 1. Rob Bonta and his Soros AG goons are trying to delay this to either punish Paramount for daring to be owned by a non-liberal, or punish them so badly they agree to undo the deal entirely.

In response, Paramount threatened to leave California and take Warner Bros. with it. A move that some estimate would save them a half a billion per year in taxes.

They said they would move their corporate headquarters by October 1 unless Bonta and the League of Soros AGs allowed the sale.

Now Paramount is showing that they're not bluffing.

Paramount Skydance is actively looking for office space in Nashville -- a sign the company is seriously considering moving at least some operations from Los Angeles amid the legal fight over its purchase of Warner Bros. Discovery, according to two people familiar with the search who were granted anonymity to discuss it.

Paramount, headquartered in Hollywood, has sought about 400,000 square feet of space in the Tennessee capital that it could move into in two to three years, according to one of the people. However, no existing building there has a vacancy that aligns with the company's needs and timeline, the person said.

Representatives of the studio have also reached out to at least two real estate developers about constructing new offices in Nashville that the company could occupy in three years, the person said. Paramount representatives were recently shown a vacant multi-acre parcel outside of downtown Nashville where the company could build new headquarters, according to the other person with knowledge of the matter.

...

"His intent is to be committed to California," Paramount Chief Legal Officer Makan Delrahim said of Paramount Skydance CEO David Ellison at POLITICO's The California Agenda: Sacramento Summit in August. But, Delrahim noted, "There is a point at which you have a fiduciary duty to shareholders."
...

"We cannot comment on a company's plans," Bonta's office said in a statement. "It's no secret that Paramount has been making this threat, despite its alleged commitment to California and Hollywood. What Paramount decides to do is Paramount's choice alone. We'll continue to apply the law without fear or favor and continue to be open to coming to the table for good faith discussions."

The lawsuit is scheduled to go to trial in March. Starting in October, Paramount will have to pay roughly $7 million for each day the $111 billion deal remains incomplete. Regulatory agencies of more than 60 countries and jurisdictions have approved the merger, and the U.S. Department of Justice approved the sale in June.

I thought that Nashville, not Austin, would be the city Paramount/Warner Bros. moves to. Because it has long been the capital of the country music recording industry, it already has the infrastructure needed to support entertainment types, by which I mean, a robust cocaine distribution network and discrete high-end prostitutes.

The move could be so disastrous for the already-desolated California that even Gavin Newsom and Karen Bass are calling for a "compromise" settlement. I don't know what they have in mind, but I would guess they want a guarantee that Paramount/Skydance will sell CNN, HBO, and CBS to friendly leftwing interests. There is no way Paramount/Skydance would sell HBO or CBS, but I imagine they already plan to sell off CNN.

Per Google's AI, here's the potential economic fallout if Paramount/Skydance does abandon the state:

Why Leaders Are Pushing for Compromise

While Hollywood creatives initially signed letters opposing the merger due to fears of corporate consolidation and job cuts, the threat of Paramount leaving the state has shifted the stakes completely. Industry analyses indicate a worst-case scenario where a total relocation could devastate the local entertainment ecosystem, risking:

Up to 58,000 full-time jobs statewide.

$21 billion in annual economic output.

Over $1.1 billion in lost annual state tax revenue.

I hope they follow through with the threat.

posted by Disinformation Expert Ace at 04:30 PM

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