A leaked report commissioned by Paramount Skydance reveals that California could lose as many as 58,000 jobs and up to $21 billion annually in economic output if the company moves its studio operations out of the state. The findings were prepared by the Los Angeles Economic Development Corporation's Institute for Applied Economics and come as the company's $110 billion merger with Warner Bros. Discovery faces an antitrust lawsuit from a coalition of state attorneys general.
Paramount has threatened to relocate to Georgia, Tennessee, or Texas if the lawsuit successfully blocks or delays the merger. The company is in ongoing negotiations with the attorneys general, with an October 1 deadline before a "ticking fee" provision takes effect. This provision would require Paramount to pay Warner Bros. Discovery shareholders $7 million per day until the merger is finalized.