stalled

Paramount CEO David Ellison may pull his operations out of California if the state does not end its attempt to block the company’s merger with Warner Bros Discovery and agree to settlement talks as soon as October.

The rumours were first reported by the publication Variety on Tuesday. They signal Ellison may be willing to leverage economic pressure on California’s ailing film industry in order to push through the merger.

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Al Jazeera was not able to independently confirm the validity of the report.

In July, California Attorney General Rob Bonta announced that he was leading a coalition of 12 state attorneys general in an antitrust lawsuit to block the consolidation.

Should Paramount and Warner Bros Discovery combine, Bonta warned that the resulting company would control 27 percent of theatrically released films in the United States and a third of the country’s basic-cable output.

“Consolidation here not only leads to higher prices,” Bonta said. “It also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences.”

But Variety reported that Ellison told Paramount’s senior executives that he would begin the process of moving the company out of California on October 1 if Bonta does not agree to settlement talks.

There could be downstream effects as well. The report also alleged that Ellison would pull Warner Bros Discovery out of California, too, if the $110bn merger goes through.

Variety indicated that Paramount is considering relocating to the US states of Tennessee, Texas or Georgia — none of which are involved in the ongoing antitrust lawsuit.

A growing enterprise

The dispute over Warner Bros Discovery’s fate stretches back to late 2025, when the company’s sale was first announced.

Critics quickly observed that the sale had the potential to shift the balance of power in Hollywood, with Warner Bros Discovery wielding influential properties including the news channel CNN, the production company New Line Cinema and the television-streaming service HBO.

The streaming giant Netflix initially emerged as a frontrunner to take over Warner Bros Discovery, but by February, Paramount succeeded in inking an agreement.

It was the second major merger Paramount had lined up in less than a year. In 2025, it had also succeeded in consolidating with the media production company Skydance, in a deal that generated scrutiny about the editorial independence of its subsidiaries.

Paramount’s decisions that year to cancel The Late Show with Stephen Colbert and enter into a $16m settlement with US President Donald Trump were widely perceived as efforts to curry government favour for the merger.

Paramount is considered a titan in US filmmaking and media production, as one of the oldest studios in the country. Its portfolio includes CBS News and Paramount Pictures.

 

A pair of lawsuits

The impending merger with Warner Bros Discovery has led to a fresh round of scrutiny for Ellison and the Paramount leadership.

Last week, Ellison addressed some of those concerns in an opinion column in The New York Times.

In it, he questioned whether the states’ antitrust lawsuit was “really about market share”, speculating that it was instead about control over major news outlets like CNN. He also sought to portray himself as politically independent.

“I have regularly voted for candidates of both parties; I hold some views that would be called conservative and others that would be called liberal, just like most Americans,” Ellison wrote.

“When it comes to our news operations, I do not aspire to lead these companies to bend their newsrooms to my views.”

But the states have argued that combining Warner Bros Discovery and Paramount would create a monopoly, stifling competition.

If the merger succeeds, the states say that only four distributors would control 86 percent of the country’s films.

The merger could also mean job losses. As of the end of 2025, the headcount at Paramount stood at 17,600, while Warner Bros Discovery had 35,500 employees.

A day after the 12 states filed their lawsuit, the Writers Guild of America (WGA) followed suit.

In its July 14 complaint, the guild argued that the merger would mean fewer jobs and more pressure on writers to accept less favourable working terms, owing to reduced competition in the media market.

“Writers will be paid less and have fewer employment opportunities,” the WGA complaint said.

In Los Angeles County alone, the merger could result in a loss of nearly 2,500 jobs, according to an analysis by the Los Angeles County Department of Economic Opportunity, published in June.

As many as 6,000 employees around the world could also see their positions cut.

By comparison, when the Paramount and Skydance merger was completed in 2025, the company laid off roughly 2,000 people.

 

Costly standoff

On July 24, Paramount Skydance agreed to pause the merger until a ruling in the states’ case is ultimately made or until June 1, 2027 — a move the WGA celebrated.

“It remains our view that this merger is unlawful, and we will continue the fight to block it,” WGA said at the time.

The WGA did not respond to Al Jazeera’s request for comment.

Slowing the merger could be costly for Paramount Skydance. Under the terms of the merger, the company would have to pay a so-called ticking fee of $7m per day, or $650m per quarter, if the deal does not close by September 30.

But the standoff with Ellison could also be costly for California, which is experiencing a downturn in the number of productions filmed in the state. New York, another state involved in the lawsuit, could see a backlash, as it houses studios for CBS News and Paramount’s executive offices.

Representatives for the state of California and Paramount Skydance did not respond to Al Jazeera’s request for comment.

Paramount Skydance’s stock is trending upward on the heels of Tuesday’s report. The stock was up 0.4 percent in midday trading, while Warner Bros Discovery was up 1.1 percent.

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A US trade expert says the US, Mexico, and Canada need to hold trilateral talks to get a cross-border trade deal signed. Ex-lead US international trade negotiator Harry Broadman says the longer it takes Trump to get a trade deal with his neighbours, the weaker he looks to China.

A bipartisan group of senators, including Sen. Lindsey Graham, R-S.C., pictured — on Friday reached an agreement with the Trump administration on a long-stalled effort to sanction buyers of Russian energy resources. File Photo by Bonnie Cash/UPI | License Photo

July 10 (UPI) — A bipartisan group of senators on Friday reached an agreement with the Trump administration on a long-stalled effort to sanction buyers of Russian energy resources.

First introduced in 2025, the Sanctioning Russia Act would have imposed 500% tariffs on countries purchasing petroleum and natural gas from Russia.

But the legislation — spearheaded by Sens. Lindsey Graham, R-S.C., and Richard Blumenthal, D-Conn. — has repeatedly failed to pass muster.

The senators now believe they finally have a version of the bill that could be approved in both chambers and signed into law by the president.

“As Russia intensifies its slaughter of civilians, it is imperative that the legislative and executive branches work together to create tools to exact a heavy price on those who buy Russian oil and natural gas, fueling the Putin war machine,” the senators said in a statement.

Senate Armed Services Chairman Roger Wicker, R-M.S., and Senate Foreign Relations Ranking Member Jeanne Shaheen, D-N.H., also signed into the statement.

The senators did not provide details on the updated text of the legislation.

Speaking to reporters in Kyiv on Friday, however, Graham said he’s “never been more optimistic than I am today that we have the formula to end this war.”

He added he hopes the sanctions will “help Ukraine be more lethal [and] let those supporting Russia to know it’s going to be a price to be paid if you keep doing it,” Ukrinform reported.

On the eve of his 25th birthday, Rams star receiver Puka Nacua said he was working on becoming a better person — and that if he continued on that journey the potential massive contract extension that appears to have stalled will take care of itself.

Nacua on Thursday addressed reporters for the first time since checking into a Malibu rehab facility in March. Nacua sought help after a string of incidents, which included a December incident that led to a civil lawsuit.

“Something that I feel like I’ve learned is, it’s OK to ask for support,” Nacua said after participating in an organized-team activity workout in Woodland Hills. “And then to recognize the platform that I have in being a professional football player, and trying to use that for the betterment of myself and for those around me.”

With an offense that features Nacua, quarterback Matthew Stafford — the reigning NFL most valuable player — and receiver Davante Adams, and a defense that includes edge rusher Jared Verse and All-Pro cornerback Trent McDuffie, the Rams are regarded as a favorite to play in Super Bowl LXI at SoFi Stadium.

Last season, Nacua led the NFL with 129 receptions and was voted All-Pro. The 2023 fifth-round draft pick is entering the final year of his rookie contract, and he is eligible for an extension that could surpass the $120-million deal the Seattle Seahawks gave receiver Jaxon Smith-Njigba.

But incidents last season and this offseason caused the Rams to put off talks about awarding Nacua an extension.

During a livestream last December, Nacua criticized NFL officials and made a gesture regarded as antisemitic. Nacua apologized, but after the Rams’ loss to the Seahawks a few days later, Nacua criticized officials in a social media post from the locker room. The NFL fined him $25,000.

In the lawsuit, a woman alleged that Nacua made an antisemitic remark during a group dinner and then bit her while riding in a vehicle.

His attorney has denied that Nacua made an antisemitic remark and said the bite resulted from “horseplay.”

On Thursday, when asked about the allegations, Nacua declined to comment specifically.

“With it being an ongoing legal battle, out of respect for the other party involved, don’t really have much to speak on,” he said, adding: “A moment for me to learn from, kind of some of the situations I was putting myself in, and then also having just an awareness of how I’m conducting myself in and out of this football field.”

Nacua said he made the decision to seek help with the support from those in his “inner circle.”

“I like to think of myself as a pretty happy outgoing guy that enjoyed life,” he said. “But there also were some difficulties of just being in this professional sport and just throughout my entire life.”

The rehab program was a “short stint,” but Nacua said he continues to meet with a team therapist and has adopted tools such as journaling.

Nacua, who became a father in October, said he was also motivated to continue self-improvement work as a way of sharing with and teaching his son.

“The great things I’ve been able to accomplish and to enjoy those moments, but then also to teach him in some of the mistakes that I’ve made,” he said. “So there’s an opportunity for him to learn before some of those wrong decisions can be made.”

Nacua’s “security in being able to be authentically honest about” seeking help was admirable, coach Sean McVay said.

“I think there’s real strength in some of the vulnerabilities,” McVay said, “and I’m really proud of him.”

Stafford, 38, said he talks with Nacua “nonstop” and that Nacua has looked “fantastic” during workouts.

“He’s a great person, a great kid, and just doing everything I can to try and give advice when it’s needed, or also just be his buddy too,” Stafford said. “I’m doing everything I can — I think everyone is, to just support him. … We’re happy he’s back doing his thing.”

Stafford spoke for the first time since signing a one-year, $55-million extension that keeps him under contract with the Rams through the 2027 season.

“Happy to have … next year taken care of if I decide to play — and they still want me back,” Stafford quipped. “Just excited to get that behind me, cause I just want to come out here and play and not think about that kind of stuff.

“So great to get that done sooner rather than later.”

Before Nacua’s string of incidents, the receiver also appeared on track to receive a possible extension before the 2026 season began.

Now, the Rams are expected to let him play out the season, and then possibly use the franchise tag for 2027 before making a long-term commitment.

Nacua said he could not imagine playing for another team.

“If I can continue to improve as a person, I know the coaches and the people around me are helping me improve as a football player,” he said. “So those are the things I can control, and hopefully allow those other things to handle themselves.”