California officials responded to recent reports indicating that Paramount is preparing to leave the state. The company has declined to comment on the matter, and no official announcement has been made yet.
Sources told TMZ that officials inside Los Angeles Mayor Karen Bass' office and California Attorney General Rob Bonta's office were informed of a potential departure announcement. The expected announcement ultimately never materialized.
Industry observers remain uncertain whether the studio changed its course or simply delayed the decision. Meanwhile, reports indicate that Paramount is actively exploring potential office space in Nashville.
A spokesperson for Paramount declined to comment when reached by FOX Business. The growing speculation coincides with a fierce legal battle over the company's proposed corporate merger.
California Attorney General Rob Bonta is currently leading a multistate antitrust lawsuit. The legal action seeks to block Paramount's proposed one hundred ten billion dollar acquisition of Warner Bros. Discovery.
Bonta's office stated that it could not comment directly on Paramount's internal plans. However, the office acknowledged that the company has repeatedly threatened to leave the state in the past.
"It's no secret that Paramount has been making this threat despite its alleged commitment to California and Hollywood," Bonta's office said in an official statement. State officials added that any relocation choice remains entirely up to the company.
Paramount is moving out of California
That'll cost the state up to $21 billion in lost economic output yearly and up to 58,000+ California jobs
This did NOT age well… pic.twitter.com/j5NhNGglzS
— End Wokeness (@EndWokeness) September 17, 2026
The attorney general's office emphasized that it will continue enforcing state laws while remaining open to good-faith negotiations. The high-stakes antitrust trial is currently scheduled for March if a settlement is not reached.
Los Angeles Mayor Karen Bass' office also addressed the brewing uncertainty on Wednesday. City leadership stressed that the primary focus is protecting local entertainment jobs.
"Mayor Bass is focused on protecting and fighting for jobs in LA, including critical jobs in the entertainment industry that have been a vital part of Los Angeles’ economy," her office said in a statement. City officials noted that the mayor remains actively engaged on the issue.
Paramount CEO David Ellison is currently navigating the mounting regulatory pressure alongside the ongoing litigation. State prosecutors argue that the massive media merger would reduce competition and concentrate too much power in film distribution.
🚨 EXCLUSIVE: Paramount to leave California, according to the L.A. Mayor's office and the California Attorney General's office.
What we know: https://t.co/X3Qv5CAVDL pic.twitter.com/1vWZS5AXVb
— TMZ (@TMZ) September 16, 2026
Ellison has reportedly indicated that the company could look toward states like Texas, Tennessee, or Georgia if the legal challenges persist. Settlement discussions remain ongoing as both sides prepare for the upcoming legal milestones.