Overview
- Reports published Tuesday say CEO David Ellison told senior executives he will begin the process of exiting California on Oct. 1 if California Attorney General Rob Bonta does not agree to negotiate a settlement of the states’ antitrust suit.
- Bonta publicly denounced the reported threat as "blackmail," saying the move is an attempt to force approval of what his office calls an illegal merger and that his team remains committed to stopping the deal.
- Oct. 1 is significant because the merger agreement calls for a $7 million‑per‑day ticking fee to start if the transaction has not closed, and the companies would face a $7 billion termination fee if the deal fails.
- The merger is currently paused under a court standstill with a federal merits trial set for March 2, 2027, and the pause delays closing until five days after the trial or June 1, 2027, whichever comes first.
- Paramount has offered concessions and said it is open to settlement while some states, unions, and public critics say fixes would not cure antitrust harms; a move out of California would threaten headquarters jobs and prompt competing states to offer incentives.