Paramount CEO David Ellison has begun exploratory talks about relocating the studio's corporate headquarters out of California, potentially to Tennessee, Texas or Georgia, amid a dispute with the state over Paramount's $111 billion (£87 billion) takeover of Warner Bros. Discovery. The move stems from concern that a coalition of state attorneys general could delay or block the deal, exposing Paramount to a costly daily penalty, and the relocation talk is widely seen as a contingency plan and negotiating tactic rather than a certainty.

Tennessee officials first approached Ellison on 2 July 2026, and he took the offer to Paramount's board less than two weeks later at the urging of his advisers. Twelve state attorneys general have been preparing legal action to block the merger, and Paramount fears having to pay a so-called "ticking fee" of $7 million (£5.5 million) a day, which begins accruing on 1 October. Senior leadership met last week at the Paramount lot to formalise the exploratory process, with discussions reportedly including a possible sale of the Paramount and Warner Bros. studio lots, though no decisions have been made on California production spending, seen as Paramount's biggest bargaining chip.