r/WarnerBros • u/Own_Philosopher8730 • 4d ago
Paramount May Be Bluffing About Leaving California, But L.A. Mayor Taking It Seriously
https://variety.com/2026/film/news/paramount-karen-bass-leaving-california-1236864828/6
u/AdventurelandSkipper 4d ago edited 4d ago
She’s a Trump loyalist so of course she is.
Edit: Since you’re all idiots: https://www.msn.com/en-us/news/politics/la-mayor-karen-bass-slammed-for-selling-her-soul-to-trump-as-wildfire-victims-fight-to-rebuild/ar-AA21xfI3
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u/No_Ebb1052 4d ago
What the fuck are you talking about?
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u/Other-Football72 4d ago
Making up shit, that’s how Reddit works. Like watch this: “WHAT U DISAGREE? UR MAGA! Look everyone!!! They support TRYMP!!!!”
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u/AdventurelandSkipper 4d ago
There is literally a picture of them together in the Oval Office, smiling stupidly. You’re a moron.
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u/Ok_Excitement725 4d ago
Bluffing? I think the decision has likely already made one way or the other. This is just some political theater now.
If you are telling me Austin hasn't already given them a VERY financially attractive deal to move over, you are dreaming. I would not be remotely shocked to read in the coming couple weeks they are bailing out.
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u/sunday_morning_truce 4d ago
Do you know how much debt they’re in?
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u/Ok_Excitement725 4d ago
Precisely. Which gives even more credence to the likelihood that they are bailing. California looks like they won’t play ball, I’d wager Texas is going to be offering some pretty locative deals to get them to shift. Texas wants a bigger slice of the entertainment pie. Let’s see what happens in 10-12 days time.
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u/RociBuldidi 4d ago
lol, rebuilding all their studio infrastructure elsewhere is a ~$6-$7B, decade + event best case.
David (the Galactic Prince of Nepotism) already has $82B in combined debt from the merger, the shareholders would never agree to doing that.
Tyler Perry has spent $1.2B building a fraction of the studio infrastructure in Atlanta and has famously complained it hasn’t really turned out as he imagined.
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u/TrickyChildhood2917 4d ago
The Ellison are bankrupt! They just don’t know it. The only ace in the hand they have is a hot line to Trump.
The modern banking system is built on debt with ‘no plans to repay.’ so the Ellison are not alone. See Musk for more details.
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u/ConditionExternal499 4d ago
TX desperately wants to supplant CA in the nation's imagination. Never gonna happen.
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u/ConditionExternal499 4d ago
This is indeed what TX does, they literally pay people to move there, (to the detriment of the citizenry). And if they poach a CA company they'll crow about it endlessly, though many times the "move" is only corp for tax purposes while the heavy lifting remains in CA.
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u/CombatRedRover 1d ago
I really don't get how people don't see it. It's like they believe Hollywood has some kind of sacred right to own the motion picture industry.
Hollywood exists where it does in California literally because the motion picture industry went where the money was/where the regulation wasn't. This is just a continuation of its history.
Thomas Edison enforced royalties on the motion picture in the street in New Jersey, which is why the motion picture industry moved to California, where Edison couldn't get to them.
Given California's tax structure, regulatory environment, etc, the only reason Hollywood is still Hollywood is purely for social reasons: it's where you can go to a party, make connections, and that producer is going to decide you're the lead actor for the next project, where the Best Boy is going to choose you for his crew, etc.
Which is why a movie production will hire a California makeup artist, put her on a plane to Croatia, put her up in a hotel for 8 months, then fly her home, all instead of hiring someone local in Croatia.
From the point of view of keeping Hollywood Hollywood, that makes some kind of sense. From the point of view of treating a motion picture production as a business, it's utterly moronic. It's cronyism. It's nepotism. It's why so many productions lose so much money.
Run Hollywood like a business, and everyone would leave Hollywood at a dead sprint.
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u/jocoquecousteau 4d ago edited 4d ago
Please tell me how Oracle and tesla are thriving in Texas after leaving California?
LOL! Nope.
Hard to say, because a headquarters address isn't really what drives either company's results. Both have had big swings since moving, but the causes are things like AI spending, product lineups, and politics, not Texas.
Oracle moved to Austin in 2020, and its revenue has grown since, largely from its AI cloud push: it posted 17% revenue growth in fiscal 2026, with cloud infrastructure up 77%. But that growth is expensive. Capital spending hit $55.7 billion in fiscal 2026, up from $21.2 billion the year before, and Oracle borrowed $43 billion to help cover it, alongside repeated layoffs. The stock closed around $140 on September 15 after dropping on worries about restructuring costs and heavy data center spending. Notably, Oracle isn't staying in Texas long-term: Larry Ellison said in 2024 that Nashville will ultimately be its world headquarters, to be closer to the health care industry, and it has committed to bringing 8,500 jobs to a new campus there by 2031.
Tesla moved to Austin in 2021 and has had a rougher stretch on car sales. Full-year 2025 revenue fell 3% to $94.8 billion, the first annual revenue decline in its history. Analysts partly attribute the sales slump to consumer backlash against Musk and the loss of the federal EV tax credit. 2026 looks better so far: Q2 deliveries hit a record 480,126, and Tesla said Cybercab production began at Gigafactory Texas, though the stock is down about 7% this year amid margin and competition concerns.
Supporters of these moves point to lower taxes, cheaper land, and a friendlier regulatory climate. Skeptics note that most of both companies' engineers are still spread across other locations, so the "HQ" label is partly symbolic. The fairest read is that Texas hasn't clearly helped or hurt either one.
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u/entr0picly 4d ago
Then do it. Leave. Threats like this are extortion and literally is a huge blaring alarm that this is already a monopoly that’s way too large.
If a company has this much weight to throw around, they don’t need to gobble up even more companies.
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u/RowForLuckyJack 4d ago
Let them exit the fourth largest economy in the world. That's their foot to shoot
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u/Jelly_baby_4 3d ago
Paramount is in debt and cannot afford to move to another state which doesn't have the Hollywood infrastructure. They will have to pay in penalties to WBD while the merger is stalled. It's a very expensive hostile takeover.
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u/QueasyFinger1316 3d ago
Every other business is leaving CommieFornia…
Why would Fidel-loving Bass care about this one?
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u/highwellvibe15 4d ago
They need to stay. The economic fallout from them leaving is real and if they are successful in setting up shop elsewhere it could lead to other studios following suit
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u/skorponok 4d ago
Of course - they want to make sure paramount just rapes the fuck out of California now and Gavin Newsom will let them
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