UPDATE: The lawsuit settled, and Ellison now says the merged company is staying in L.A. Our insiders’ read: “there’s nothing wrong with moving ‘some functions’ to TN”.
On August 25, our insiders told us Paramount’s move out of California is no bluff: Tennessee is the “final destination, not Texas,” and “it’ll take years, but it will happen.”
Now Paramount is touring Nashville real estate. And California suddenly looks ready to make a deal.
Politico reports Paramount is looking for roughly 400,000 square feet of office space in Nashville, per two people familiar with the search.
And on Friday, the Wall Street Journal reported Paramount and California Attorney General Rob Bonta are in “advanced talks” to settle the lawsuit holding up the $111 billion Warner Bros. merger.
Paramount Is Touring Land For A Headquarters
Per Politico, Paramount wants space it can move into within two to three years.
No existing Nashville building has that much room available on that timeline. So Paramount representatives have contacted at least two developers about constructing new offices.
They also toured a vacant multi-acre site outside downtown Nashville where a headquarters could be built.
Paramount declined to comment.
Tennessee Gov. Bill Lee welcomed the news, saying “we’ve seen a lot of companies leave states like California” for Tennessee’s low taxes.
All of it lines up with what our insiders said three weeks ago. Nashville, not Austin — the “final destination, not Texas.” A two-to-three-year buildout — “it’ll take years, but it will happen.”
It also follows the September 15 report that Paramount’s board has already approved the move and the September 16 report that Paramount brass told L.A. and state officials the company is “deadly serious” about leaving.
Two Days Later, The Talks Are ‘Advanced’
The Nashville story broke September 16. The settlement story broke September 18.
Per the Journal, one compromise under discussion is running Paramount’s and Warner Bros.’ movie studios separately for a period of time instead of combining them right away.
In plain English: the merger closes, but Warner Bros. keeps making its own movies for a while. That has been on Bonta’s wish list since August.
Bonta’s office says settlement talks are confidential and it can’t confirm or deny anything. Paramount isn’t commenting either.
The two sides already have a two-day, in-person settlement conference set for late October. Before that, Paramount’s $1.88 billion bond request gets heard September 24, and the $7 million-a-day fee to Warner Bros. shareholders starts October 1.
“Advanced talks” means they may not be waiting for October.
Back in August, California called the exit threat blackmail and canceled the first settlement meeting. Now Paramount is touring headquarters sites in Nashville, and the talks are “advanced.”
Our insiders said it first: they’re not bluffing. California just figured that out.
