Could Paramount move its home base from California to Texas?

Will one of the biggest names in the entertainment industry relocate its operations to the Lone Star State?

Paramount has considered shifting its home base in California to Texas or other states, according to reports in The New York Times, Los Angeles Times, Variety and Puck. The potential change comes as David Ellison, CEO of Paramount, a Skydance corporation, seeks to acquire Warner Bros. Discovery in a multibillion-dollar deal, which has stirred tensions with California Attorney General Bob Bonta.

While Ellison has told investors the company is willing to negotiate a settlement with Bonta, the leader also is making contingency plans to shift Paramount’s historic home base from the Los Angeles area to Tennessee, or perhaps Texas, as early as this fall, according to media reports.

Paramount’s board approved Ellison’s relocation plans, according to media reports. Ellison shared the concept with his executive leadership team recently but said his preference was to remain in California, according to media reports.

While Texas has seen a migration of corporate headquarters from California, such a move would be a huge step for the state. Paramount is a massive and longtime player in its industry and has been closely tied to the Los Angeles area for decades. 

Already, Taylor Sheridan has been propelling North Texas to become a force for film and TV in a way that it perhaps never has before. It’s a development that coincides with the state’s recent largest investment in film incentives funding, an effort Sheridan lobbied for and is now reaping the rewards.

In a statement, Gov. Greg Abbott’s press secretary, Andrew Mahaleris, touted Texas’ business climate and the company’s existing operations in the state. 

“Paramount already maintains major production facilities in Texas and has filmed numerous successful productions in Texas over the years,” Mahaleris said in an emailed statement. “Companies that leave high-tax, high-regulation states like California will find opportunity and success here.”

California has ceded a growing number of headquarters operations to North Texas, including names such as Kelly-Moore Paints, Schwab and CBRE. Public Storage is one of the more recent examples.