Paramount Gets Offer to Set Up HQ in Tennessee as California Aims to Block Warner Bros. Merger

Tennessee wants Paramount to put down new roots in its state in a letter to CEO David Ellison amid block the merger effort from California.

Tennessee wants Paramount to put down roots in its state as California mounts an effort to block its merger with Warner Bros. Discovery. Tennessee Deputy Gov. Stuart McWhorter sent a letter to Paramount CEO David Ellison earlier this month urging him to consider moving the company's corporate offices to the Volunteer State. The effort came as the company has faced continued pushback from California over the $110 billion takeover of Warner Bros. Discovery — including an antitrust lawsuit on Monday with 11 other state attorneys general to block the merger.

"Our success is rooted in fiscal discipline, low taxes, predictable governance, and a steadfast belief that government should be a partner in private-sector growth," McWhorter writes in the July 2 letter. "Companies that choose Tennessee find more than a favorable business climate — they find a state committed to helping them succeed." The politician continued: "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.

We would welcome the opportunity to share our vision for how Tennessee could help shape the future of Paramount Skydance and its talented team." A Paramount spokesperson confirmed the authenticity of the letter received by Ellison but declined further comment. While a move to Tennessee may be a tough proposition following the studio's relocation from New York to California under Ellison, the CEO has previous ties to Tennessee, having held a residence there from 2011 to 2025.

His father, Oracle co-founder Larry Ellison, is also building that company's campus in Nashville. Initial reports of the July 2 letter broke Tuesday, one day after 12 state attorneys general banded together and sued to block Paramount's "unlawful" $110 billion merger with Warner Bros. Discovery. The charge was led by California's AG Rob Bonta.

"Today, I am leading 12 states in challenging the proposed merger of Warner Bros. and Paramount and asking the court to block the deal," Bonta said in a statement Monday. "California's film and entertainment industry touches the lives of Americans daily. We're going to court to fight for a free and fair market and protect this iconic industry."

Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington were also a part of the lawsuit. The dozen states argued that the merger would create an entertainment giant with increased leverage over movie theaters, along with cable and streaming platforms, seemingly allowing Paramount to raise prices, reduce content output and make it more difficult for other studios and production companies to reach audiences.