From The Hollywood Reporter · Erik Hayden · · 1m 10s
David Ellison Stays in L.A. After Settlement
Paramount CEO David Ellison confirms his empire will remain in Los Angeles after legal settlement with California.
In brief
Paramount CEO David Ellison confirms his empire will remain in Los Angeles after legal settlement with California. David Ellison's Paramount and Warner Bros. Discovery will stay in Los Angeles following a $7 million-per-day settlement to avoid relocation. Originally reported by The Hollywood Reporter.
Settlement Announcement
Paramount CEO David Ellison states the newly merged company will remain headquartered in Los Angeles after a legal settlement with California.
“Now that we reached and announced a settlement, we're eager to get to work building a stronger Hollywood”
Relocation Threats
Ellison faced pressure to move Paramount to Texas or Tennessee after California's lawsuit and tax incentives.
“Ellison and his family have deep ties to Tennessee, he could pull up stakes and move Paramount there”
Legal Settlement Terms
The consent decree prevents selling Warner Bros. and Paramount lots in Los Angeles County for five years.
“Per the consent decree, the Warner Bros. and Paramount lots in L.A. County can't be sold during the commitment period”
Corporate Footprint
Paramount owns 14 properties totaling 2.1 million square feet while Warner Bros. owns 14 properties totaling 9.5 million square feet globally.
“Paramount owns 14 properties totaling 2.1 million square feet of space while Warner Bros. owns 14 properties totaling around 9.5 million square feet globally”
Relocation Concerns
Local officials feared Paramount's move would worsen the production flight that has plagued Los Angeles for years.
“Local officials feared that a Paramount move would be the straw that broke the camel's back”
Next Steps
The merger will create 2,495 jobs in Greater Los Angeles County and 6,000 globally at risk due to redundancies.
“The merger places about 2,495 jobs in Greater Los Angeles County and about 6,000 globally at potential risk”
The main idea
David Ellison's Paramount and Warner Bros. Discovery will stay in Los Angeles following a $7 million-per-day settlement to avoid relocation.
