David Ellison has settled a legal dispute with California's attorney general and 12 other states, reaffirming his commitment to keeping his Paramount and Warner Bros. Discovery headquarters in Los Angeles. The settlement concludes months of uncertainty during which Ellison faced pressure over alleged unfulfilled commitments to boost Hollywood production, with speculation that he might relocate the companies to Tennessee or Texas instead.

The lawsuit was filed in July after Ellison's initial February pledges to California politicians, with the threat of a $7 million daily penalty starting in October intensifying negotiations. Under the resulting consent decree, the Warner Bros. and Paramount properties in Los Angeles County cannot be sold for five years, formalising Ellison's pledge to maintain the company's presence in the city.