Ellison, the son of Jewish billionaire Larry Ellison, reportedly told top executives that Paramount’s board has already approved a relocation plan. Possible destinations include Texas, Tennessee and Georgia.
The move could save Paramount an estimated $500 million a year in taxes, according to reports. Ellison has set an October 1 deadline for settlement talks because after that, the Warner Bros. deal could begin costing Paramount about $7 million every day in additional fees.
If no agreement is reached, Paramount’s headquarters could move first, followed by more of the company’s business operations over several years. Ellison has reportedly been speaking with multiple states about incentives for a possible relocation.
The threat is a major escalation in Paramount’s fight with California Attorney General Rob Bonta, who is leading an antitrust lawsuit seeking to block the Warner Bros. deal. Ellison still says he wants the combined company and roughly 30,000 jobs to remain in Southern California, but he is making clear that Paramount is willing to leave if the legal battle continues.