Paramounts possible Hollywood exit puts Los Angeles on edge

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Set us as preferred Paramount Skydance Chief Executive David Ellison faces a pivotal decision: Should he uproot his Hollywood studio — the birthplace of such film classics as “Sunset Boulevard,” “The Godfather” and “Beverly Hills Cop”? Paramount floated shifting its home base to Tennessee or Texas in July, hoping to deter California Atty.Gen.

Rob Bonta from waging a legal battle to block Paramount’s $111-billion acquisition of Warner Bros.Discovery.Bonta rejected the tactic, calling it “blackmail.” His antitrust lawsuit, filed in collaboration with 11 other Democratic state attorneys general, has since stalled the largest Hollywood merger in decades and put Ellison in a jam.The 43-year-old tech scion — a film aficionado who has spent two decades building his career in Hollywood — has told associates he doesn’t want to leave L.A.

But he has signaled that he’s prepared to sell the historic studio lots and move Paramount’s and Warner Bros.’ operations from California if the merger isn’t finalized by next month, according to people familiar with the situation who were not authorized to comment.The prospect has rattled a region already reeling from steep declines in film production, heavy job losses, empty soundstages and shuttered small businesses.

“It would be devastating,” Assemblymember Rick Chavez Zbur, who represents a district that includes the Melrose Avenue movie lot and neighborhoods near Warner Bros.in Burbank, said of a Paramount move.

“We need to do everything we can to protect these important jobs in California’s iconic industry.”Paramount declined to comment.Hollywood Inc.

Paramount’s board has approved David Ellison’s contingency plan to move headquarters from Hollywood as early as this fall, according to people familiar with the situation.Ellison is frustrated af...