Los Angeles faces steep economic losses if Paramount leaves California

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Paramount’s exit threat puts Hollywood’s economy at risk

California could face a major Hollywood economic shock if Paramount follows through on its threat to move its headquarters and operations out of the state. A preliminary economic analysis commissioned by Paramount estimates that a full relocation could put tens of thousands of jobs and billions of dollars in annual economic activity at risk.

The possibility turns a corporate relocation threat into a broader question about California’s entertainment economy, including employment, business spending and tax revenue.

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The merger fight is driving the relocation threat

The threat is tied to Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, a transaction valued at about $110 billion. California and 11 other states sued to block the deal, arguing that it would reduce competition in film distribution and cable programming…

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