Paramount is exploring the possibility of relocating CBS News from New York as tensions rise in a legal dispute with the attorneys general of New York and California, according to reports.
California’s Attorney General Rob Bonta is spearheading a coalition of twelve states opposing Paramount’s proposed $110 billion purchase of Warner Bros. Discovery. Some insiders suggest that moving CBS News out of New York might be one potential strategy for Paramount.
While CEO David Ellison prefers to keep CBS News in the city, there are ongoing discussions about potentially relocating it, as informed sources revealed.
Such a move would significantly alter the media landscape. This consideration coincides with Paramount’s board approving a plan to shift its Hollywood studios out of California if Bonta does not engage in settlement talks.
CBS News employs around 1,200 people globally, with a significant portion based in New York, a spokesperson noted.
According to a source, the actual negotiations revolve around how much of the current operations might be shifted from California and New York, adding that if it involves substantial production, it will certainly be a considerable effort.
An executive aware of Paramount’s plans mentioned that Ellison might contemplate relocating all news operations to Atlanta, home to CNN, aiming to strengthen their position in the legal confrontation with the state auditor’s office, even if it escalates to the Supreme Court.
Another insider referred to the potential move as a “contingency plan.”
It’s believed that CBS News’ broadcast center could be worth “billions” for the Ellison family.
Insiders also think that Bonta might be looking to offload CNN, a Warner Bros. asset, before finalizing the deal, but Ellison doesn’t seem interested at this point.
Nonetheless, there’s a sense of cautious optimism among Paramount’s team that a resolution with Bonta could be reached soon, with hopes to bring him to the negotiating table by October 1.
As part of the agreement with Warner Bros. Discovery, Paramount is facing a financial penalty of $7 million daily starting October 1 until the merger is finalized.
Although there were hopes for a quick legal resolution by November, a federal judge recently scheduled a trial for March 2027, presenting a setback for Ellison’s claims of wanting to be CNN’s “trusted steward.”
In his ongoing struggle with Bonta and New York AG Letitia James, Ellison is trying to find leverage, though it remains unclear how much of his operations he’s willing to shift from California or New York.
Currently, there are no formal discussions taking place, with both sides remaining at odds over concessions, as insiders have reported.
Amid escalating pressure from Democrats to maintain good relations with studio heads and avoid job losses in Hollywood, Paramount’s positive outlook continues.
Rumors indicate that California Governor Gavin Newsom has privately expressed concerns regarding Bonta’s lawsuit, cautioning that obstructing media consolidation could negatively impact employment in Los Angeles.
The enormous media merger would combine properties like HBO Max, Paramount+, HBO, CBS, CNN, and countless films under one umbrella led by Ellison, the son of billionaire Oracle founder Larry Ellison.
Bonta has claimed the merger would result in increased prices, decreased quality, and less content, potentially giving control over nearly a third of the U.S. theatrical distribution market and basic cable programming.
Paramount has consistently defended the merger, highlighting that it has received approval from the U.S. Department of Justice as well as regulators in the EU, UK, Australia, and China.
Currently, Paramount has not responded to requests for comments.
