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Paramount threatens $7M daily charges, HQ move by Oct. 1

8/12/2026

Summary

Ellison Threatens Relocation

Paramount CEO David Ellison warned he will move headquarters out of California if the merger antitrust case is not settled by Oct 1.
California Attorney General Rob Bonta, heading a 12-state suit, would charge Paramount $7 million per day starting Oct 1.
Ellison said relocating to Tennessee, Texas or Georgia could save $500 million in state taxes annually.
Tennessee’s deputy governor and Texas Attorney General Ken Paxton have offered incentives to support the move.

Summary

Paramount Faces Fee

Paramount must pay Warner Bros. Discovery a $7 billion breakup fee if the merger does not close by June 4.
The company holds $1.6 billion in cash and a $3.2 billion revolving loan, while delaying the deal adds $190 million in bridge-loan financing costs.
Ticking fees of roughly $650 million per quarter, about $7 million a day, will accrue after September 30 until the transaction finalizes.

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Ellison Threatens Relocation

Paramount CEO David Ellison warned he will move headquarters out of California if the merger antitrust case is not settled by Oct 1.
California Attorney General Rob Bonta, heading a 12-state suit, would charge Paramount $7 million per day starting Oct 1.
Ellison said relocating to Tennessee, Texas or Georgia could save $500 million in state taxes annually.
Tennessee’s deputy governor and Texas Attorney General Ken Paxton have offered incentives to support the move.

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