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By Olivia Lupia, Tennessee Conservative News –
California Attorney General Rob Bonta cancelled his meeting with Paramount Skydance Studios amid continued legal battles with several blue states over Paramount’s planned $110 billion merger with Warner Brothers, leaving the company to continue weighing a relocation away from the Golden State with Tennessee emerging as a top contender.
AG Bonta was scheduled to begin settlement talks with Paramount executives on Monday, but reportedly scrapped the meeting late Sunday, accusing Paramount of leaking and mischaracterizing details from a preliminary meeting between the two sides earlier in the week.
California is one of 11 states suing the entertainment giant in an antitrust case, with the suit causing the merger to currently be on hold until a March federal trial in Oakland, CA. In return, Paramount Skydance has asked a federal judge to require all the states involved in the suit to post a $1.88 billion bond as the company must pay a fee of $7 million per day if the merger is not closed by Sept. 30.
Paramount noted in their request that the March trial and subsequent legal briefs filed in April will have forced them to pay Warner Brothers shareholders an unrecoverable $1.3 billion in “ticking fees” and believes the bond will allow them to recover losses if a lower court approves the merger.
Monday’s meeting with the California AG was meant to test the waters for potential negotiations between the two parties, but with Bonta’s accusations of leaks, though he did not specify what information Paramount supposedly leaked, those discussions appear to have stalled.
“Not only did Paramount leak the alleged substance of settlement discussions, but they misrepresented these discussions, demonstrating a lack of good faith,” Bonta said in a statement to the New York Times. “As soon as Paramount stops playing games and engages sincerely, my office is happy to meet again.”
Paramount denied being the source of the leak, saying the company “shares the concerns about the public discussions and misreporting that has surrounded this deal… We remain hopeful and stand ready to continue good faith discussions to resolve the Attorneys General suit and move forward with our plans for increased competition and increased output to the benefit of the talent and entertainment workers.”
With the collapse of discussions, which was reportedly only indented to see whether further talks would be possible rather than to make a deal, Paramount continues to consider a potential exodus from California if it can’t reach an agreement before the ticking fee takes effect. And Tennessee appears to be the studio’s top choice, according to a recent report from the Wall Street Journal.
“Tennessee is the company’s first choice for a new home, people familiar with the company’s thinking have said,” the article claimed.
The Volunteer State has already been working to lure Paramount Skydance, with Tennessee Deputy Gov. Economic and Community Development Commissioner Stuart McWhorter sending a letter to Paramount CEO David Ellison last month urging him to consider relocating to Tennessee and promoting the state’s advantages for the company.
“This is a state where people still believe in service, community, and the importance of family… We are a place where employees can build meaningful careers and where families can build extraordinary lives…As Paramount Skydance writes its next chapter, Tennessee offers a compelling proposition: a state where creativity and technology converge, where talent is developed intentionally, and where innovation is embraced,” the letter read.
However, Ellison has been evaluating other alternatives outside California, including Texas and Georgia if the legal fight cannot be resolved. Reports which began circulating last week claim Paramount is also considering Austin, TX for their new headquarters and prospective studio, with Ellison indicating incentives from whichever state the company chooses will help finance the relocation.
“Paramount has also reportedly been in contact with several states, discussing a five-year plan that would start with a headquarters relocation followed by the majority of the studios’ remaining infrastructure to whichever lucky state is chosen,” one report says.
Though nothing is confirmed, if Paramount does decide to leave California, the move will likely happen quickly as the Oct. 1 deadline looms, meaning Nashville could see another major corporation join its ranks before the end of the year.
Sources:
About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
One Response
Another wad of lucifer’s accursed dimmercraps, just what we DON’T need.