Tennessee is courting Paramount Skydance's $110 billion merged headquarters away from California just as a dozen Democratic attorneys general sue to block the deal — and the stakes for ordinary Americans are whether states that chase business away lose jobs to states that actually want them.
The fight is simple: California and 11 other blue states want to kill Paramount's merger with Warner Bros. Discovery, claiming it would hurt competition. Tennessee sees an opening and is offering a home with lower taxes and fewer political headaches. The message from Nashville is that if California doesn't want the business, someone else will take it.
Tennessee Deputy Gov. Stuart McWhorter wrote to Paramount Skydance CEO David Ellison on July 2, urging him to relocate the combined company's headquarters. "Few leaders have the opportunity to redefine an iconic company while simultaneously shaping the future of an industry," McWhorter wrote, according to the New York Post. "As you look ahead, I encourage you to consider Tennessee as the home for that future."
McWhorter pitched the Volunteer State's low taxes, predictable government, and business-friendly policies, arguing companies find "more than a favorable business climate — they find a state committed to helping them succeed." He also touted Tennessee's workforce in entertainment, AI, and digital content, along with Nashville International Airport's expansion and the state's central location.
The invitation landed as California Attorney General Rob Bonta and attorneys general from 11 other states — Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington — filed an antitrust lawsuit Monday seeking to block the merger. CBS News reported that the coalition claims the deal would harm competition, drive up cable and movie ticket prices, and result in lower pay and fewer jobs for industry workers. Bonta's office said a combined Paramount-Warner Bros. would control nearly a third of cable programming and more than a third of blockbuster films.
"We have antitrust laws and merger controls for a reason, because competition is the lifeblood of a healthy and vibrant economy," Bonta said at a press conference.
Paramount isn't backing down. "The lawsuit filed by the state attorneys general, in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law," a Paramount spokesperson said.
Here's the wrinkle the suing states don't want to dwell on: the Justice Department already closed its investigation into the deal in June, clearing the way for the merger. The DOJ said the transaction "is not likely to result in harm to competition or American consumers," according to CBS News. When the feds say pass but a dozen state AGs sue anyway, follow the politics — not the law.
The Writers Guild of America also filed a separate lawsuit Tuesday, with WGA West President Michele Mulroney claiming the merged firm would become "the largest buyer of original film and television programming in the United States" and threaten writers' livelihoods.
Money is ticking. If the merger doesn't close by Sept. 30, Paramount owes shareholders a 25-cent-per-share fee — roughly $650 million per quarter. That's real pressure on Ellison and his team, and it's leverage the state AGs know they have.
The New York Post reported that some of Ellison's friends and advisers were already encouraging him to move Paramount's headquarters out of California if the merger got bogged down in legal fights — and that was before Bonta's lawsuit dropped.
California keeps making it harder to do business, then acts shocked when companies look for the exit. Tennessee just held the door open.








