Upset Paramount may leave California; company says it has duty towards shareholders, and that ultimately, you go to the place where you …
Paramount Skydance’s chief legal officer Makan Delrahim has suggested that the company could leave California as it faces mounting antitrust scrutiny from the state government. According to a report by The Hill, speaking at Politico’s The The California Agenda: Sacramento Summit, Delrahim said CEO David Ellison remains committed to California but emphasized there is a point where the company has a fiduciary duty to shareholders. “You have to take a look at the business environment and look to see what’s best for not only the community and the business. And ultimately, you know, go to the place where you’re wanted,” he said.
Paramount Skydance and Warner Bros. merger under fire
Paramount, based in Los Angeles, agreed last month to pause its multibillion-dollar acquisition of Warner Bros. Discovery after litigation was filed by California’s attorney general and 11 other states. The lawsuit argues the deal would give Paramount excessive power in news, entertainment, and sports media, harming competition. A trial is scheduled for next spring.The merger has drawn criticism from Democrats and media watchdogs, who worry that Warner Bros. Discovery’s CNN could fall under the influence of Ellison, an ally of President Trump and son of Oracle founder Larry Ellison. Ellison defended the deal in a New York Times op-ed, writing: “I do not aspire to lead these companies to bend their newsrooms to my views.”
Jobs and economy
Delrahim argued the lawsuit is harming employment, saying: “This merger is actually going to be good — not only for California — it’ll be good for America.” Paramount maintains that its duty to shareholders may ultimately force it to relocate if California continues to oppose the merger.
Paramount Skydance reported mixed earnings results
Recently, Paramount Skydance reported mixed second-quarter results, with revenue rising 1% year-over-year to $6.91 billion, beating estimates, while profit fell short at $41 million. Streaming revenue grew 9% to nearly $2.5 billion, driven by subscriber gains from Paramount+ content including UFC Freedom 250 and the FIFA World Cup. Studio revenue reached $1.3 billion, though theatrical performance lagged compared to last year’s Mission: Impossible — The Final Reckoning.
