Paramount May Leave California Amid WB Merger Antitrust Lawsuit

The relocation talks are in early stages, according to people familiar with the matter, and no final decision has been made. Paramount's current headquarters is in Hollywood, where it has been based for nearly a century.

The antitrust lawsuit, filed by a bipartisan coalition of 12 state attorneys general, argues the proposed $110 billion merger with Warner Bros. would harm competition in the entertainment industry and lead to higher prices for consumers. The states are seeking a court order to block the deal.

Paramount and its advisers are also exploring other options, including a possible legal challenge to the lawsuit. The company has maintained that the merger would create a stronger competitor in the streaming market and benefit consumers.

A move out of California would be a significant symbolic shift for Paramount, which has deep roots in the state. The company's studio lot in Hollywood has been a landmark since the 1920s, and it employs thousands of people in the region.

The merger, announced last year, has faced scrutiny from regulators and lawmakers concerned about consolidation in the media sector. The lawsuit is one of several legal hurdles the companies must clear before the deal can close.