The strategy aims to isolate Bonta politically by encouraging other Democratic leaders to speak out about the potential economic consequences of blocking the transaction, according to people familiar with Paramount’s efforts. Los Angeles Mayor Karen Bass has publicly pledged to engage both sides to protect entertainment jobs.
“I will continue to engage with Paramount, Attorney General Bonta, and entertainment leaders to keep jobs in LA,” Bass wrote on X on Wednesday. “This industry was built here. Its workers are here. I’m going to fight like hell to keep it here.”
Ellison has threatened to leave California unless meaningful discussions to settle the lawsuit take place by Oct. 1. That deadline precedes a federal judge’s order for the parties to engage in settlement talks by mid-October. No final relocation decision has been announced.
The potential departure could involve closing Paramount’s historic Los Angeles lot, where films including “The Godfather” were made, and moving to a location such as Nashville or Austin, Texas. The threatened move puts more than 50,000 California jobs and billions of dollars in economic activity at risk, according to the account of the company’s relocation plans.
Ellison, his billionaire father and financial backer Larry Ellison, and chief legal counsel Makan Delrahim are seeking to capitalize on concerns among senior Democrats about that prospect. People familiar with the effort say Gov. Gavin Newsom and Xavier Becerra, as well as Bass, are worried about Paramount leaving. The company expects additional political pressure on Bonta as Oct. 1 approaches.
Bonta has sought substantial structural changes to the merger, a demand David Ellison has rejected. One Paramount insider suggested that employment guarantees could provide a path to settlement, but no such agreement has been announced.
Bonta’s office has maintained that the company’s relocation threat will not determine its enforcement decisions, while leaving open the possibility of negotiations.
“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,” his office said in a statement. “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 dispute reflects competing claims about the merger’s effects on competition and employment. Opponents, including actor Mark Ruffalo and progressive Democrats, argue that combining the companies would reduce competition and cost jobs. Supporters contend that Paramount and Warner Bros. Discovery need greater scale to compete with major technology companies and Netflix.
Other state attorneys general, including New York’s Letitia James, have joined Bonta’s case. The transaction has received approval from the U.S. antitrust division and most major global regulators, leaving the state-led challenge as a significant obstacle to completion.
A prolonged court fight would add substantial financial pressure. Paramount Skydance owes a $7 million daily “ticking fee” until the transaction closes, which litigation could delay until well into next year. If Bonta blocks the deal or the Ellisons abandon it, they would owe Warner Bros. Discovery a $7 billion breakup fee.
A Paramount Skydance spokeswoman declined to comment. Representatives for Newsom and Becerra had no immediate comment.