Tennessee is making an aggressive play to lure Paramount Global away from California, and according to a new report from The Hollywood Reporter, the studio isn’t dismissing the idea.
As Paramount finds itself locked in an increasingly bitter legal and political fight with California over its proposed $111 billion merger with Warner Bros. Discovery, Tennessee officials have formally invited CEO David Ellison to relocate the company’s corporate headquarters to the Volunteer State.
While no decision has been made, the mere fact that such conversations are reportedly taking place highlights just how uncertain Paramount’s future in California has become.
Tennessee Makes Its Pitch
According to The Hollywood Reporter, Tennessee Deputy Governor Stuart McWhorter sent Ellison a letter on July 2 encouraging Paramount to move its headquarters.
The letter emphasized Tennessee’s business-friendly climate, contrasting it with California’s increasingly hostile regulatory environment.
“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 wrote. “Companies that choose Tennessee find more than a favorable business climate — they find a state committed to helping them succeed.”
The timing is hardly coincidental.
Just days later, California led a coalition of 12 state attorneys general in filing a lawsuit seeking to block Paramount’s acquisition of Warner Bros. Discovery.
Paramount Skydance CEO David Ellison sits for an interview with CNBC – YouTube, CNBC Television
According to the report, Paramount had attempted to avoid the legal showdown by offering concessions, including a commitment to produce 30 films annually with a 45-day theatrical window. Those efforts reportedly failed to prevent the lawsuit from moving forward.
“Everything Is on the Table”
Relocating a major Hollywood studio would be an extraordinary move.
Paramount only moved its headquarters from New York to California last year, making another relocation both costly and disruptive.
Even so, The Hollywood Reporter reports that a longtime adviser to Ellison said: “Everything is on the table.”
Logos for Paramount Skydance and Warner Bros. – Paramount, WB
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A Paramount spokesperson confirmed the authenticity of Tennessee’s letter but declined to comment further.
If the company ultimately chose to move, it would represent another significant shift in the entertainment industry’s geographic footprint.
Tennessee Has Connections to David Ellison
The possibility isn’t entirely out of left field.
Ellison himself reportedly lived in Tennessee on and off between 2014 and 2025 before selling his home after Paramount completed its Skydance acquisition.
His family also has substantial business interests in the state.
David Ellison in an interview with Bloomberg – YouTube, Bloomberg Podcasts
Oracle, led by Ellison’s father Larry Ellison, is currently developing a massive campus in Nashville, and Oracle co-CEO Clay Magouyrk also resides in Tennessee.
Those existing relationships could make the state a more attractive long-term option than many might initially assume.
A Potential Blow to California
Should Paramount leave California, the move would carry symbolic and economic consequences.
The studio spends tens of billions of dollars across its various productions, and even shifting a portion of that investment elsewhere would be another setback for California’s struggling production industry.
Gavin Newsom giving a speech – Office of the Governor of California, Public domain, via Wikimedia Commons
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Los Angeles has already experienced historically low filming activity in recent years as studios increasingly chase tax incentives offered by states such as Georgia, New Jersey, and New York, as well as countries like Canada and the United Kingdom.
Ironically, Paramount currently has several productions filming in California, including Matlock, NCIS, and Tracker.
McWhorter made it clear Tennessee believes it can offer a better environment.
“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,” he wrote. “We would welcome the opportunity to share our vision for how Tennessee could help shape the future of Paramount Skydance and its talented team.”
Politics May Be Driving More Than Business
While California officials argue the lawsuit is about competition and media consolidation, many observers believe the political backdrop cannot be ignored.
The lawsuit was brought by California alongside 11 other states, all led by Democratic attorneys general.
Critics have pointed out that these same states raised no comparable objections when Disney acquired much of 21st Century Fox in 2019, despite that transaction dramatically reshaping the entertainment landscape.
A screenshot from CNN – YouTube, CNN
Now, Paramount’s proposed acquisition would place CNN under the same corporate umbrella as Paramount, prompting some skeptics to question whether politics is playing a larger role than regulators are willing to acknowledge.
Whether those concerns ultimately prove justified remains to be seen, but the legal battle has already created uncertainty around Paramount’s future.
If California continues making life increasingly difficult for major media companies, Tennessee appears more than willing to roll out the red carpet instead.
Final Thoughts
No one should expect Paramount to pack up and leave Hollywood tomorrow.
Moving a legacy studio is enormously expensive, and California remains the center of the American entertainment industry.
The logo for Paramount Skydance – Paramount
Still, the fact that Tennessee is openly recruiting Paramount—and that insiders say “everything is on the table”—illustrates how dramatically the relationship between California and major studios has changed.
If political and regulatory pressure continues to mount, the idea of one of Hollywood’s oldest studios establishing its corporate home elsewhere may no longer sound quite so far-fetched.
Do you think Paramount will move to Tennessee? Sound off and let us know!
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