Paramount and Netflix continue to fight over control of Warner Brothers, with California’s state government continuing to oppose the Paramount bid, the sticking point reportedly being preserving liberal control of geriatric news network CNN. As a result, Paramount is threatening to move out of California over the state’s opposition to the merger and their generally business hostile environment. And one potential destination for Paramount’s new HQ is Austin.
Austin could soon be home to more film and television productions as a major Hollywood studio eyes Texas for a potential move.
Paramount is considering relocating some of its operations out of California as the company fights to close its proposed $110 billion acquisition of Warner Bros. Discovery. Austin has emerged as a possible destination.
The potential move is far from a done deal. But according to the New York Post, Paramount CEO David Ellison and his partners are in discussions about establishing a movie and television studio at the Bluebonnet Business Center at 9219 Old Manor Road in East Austin.
If Paramount follows through, the move could give Austin a new role as an operations base for one of the entertainment industry’s largest companies.
Austin already has a long history with filmmaking, from the independent movies that helped put the city on Hollywood’s radar to a growing network of production facilities. And if Paramount ultimately chooses the reported East Austin site, it would be joining a particularly film-heavy stretch of Old Manor Road.
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The nearly $111 billion deal has received approval from the U.S. Department of Justice and other regulators, but California and 11 other states have sued to block the merger, arguing that it would reduce competition in the entertainment industry.
And the Netflix bid wouldn’t? It would essentially mean the end of the movie theater business in America.
Paramount has agreed to delay closing the deal while the antitrust case proceeds. The trial is scheduled to begin March 2, 2027. But beginning Oct. 1, Paramount is expected to owe Warner Bros. Discovery shareholders $7 million per day in so-called “ticking fees” until the deal closes. Paramount has estimated that the fees could total roughly $1.3 billion if the case stretches into the spring.
According to Variety, Ellison has reportedly told senior executives that Paramount could begin the process of moving operations out of California on Oct. 1 if California Attorney General Rob Bonta does not agree to settlement negotiations by then.
The New York Post reported that Austin is among the possible destinations, with Paramount reportedly exploring the Bluebonnet Business Center. Paramount has not formally announced a move to Austin, and the company’s California exit remains contingent on the outcome of the antitrust dispute.
California Democrats seem to believe that private businesses should serve the needs of the Party, not the interests of shareholders. California’s high tax, high regulation environment has been sending businesses streaming toward the exits for decades, and now film-making, the industry that’s defined California’s image to the world for over a century, looks poised to exit “Hotel California” while they still have a chance to leave.
Tags: Austin, California, CNN, Department of Justice, Hollywood, movies, Netflix, Paramount, Rob Bonta, Texas, Warner Brothers