Paramount Funded 'Independent' Merger Study Claiming $21.2 Billion California Losses
Updated
Updated · Los Angeles Times · Sep 16
Paramount Funded 'Independent' Merger Study Claiming $21.2 Billion California Losses
2 articles · Updated · Los Angeles Times · Sep 16
Summary
A leaked LAEDC draft backing Paramount’s proposed $111 billion Warner Bros. Discovery deal was commissioned and paid for by Paramount, undercutting its presentation as independent economic analysis.
The report projected up to $1.01 billion in California growth over five years if the merger closes, but warned a failed deal and relocation could cost as much as $21.2 billion a year.
Those conclusions relied heavily on Paramount’s own assumptions, including that it would move headquarters and thousands of jobs out of California without a settlement and that it would produce 30 films a year after merging.
The timing matters because the merger is already blocked by a lawsuit from California and 11 other states, with a March 2 trial set and Paramount facing a roughly $7 million-a-day ticking fee after Oct. 1.
A separate county-commissioned CVL Economics study offered a more cautious view, estimating 4,495 direct film and TV job-years at risk from 2027 to 2030 as the combined company manages roughly $80 billion in debt.