Is Hollywood Headed to Texas? Inside Paramount’s Threat to Leave California
After more than a century on Melrose Avenue, Paramount Skydance is threatening to pack up and leave California — and Texans think their state has the inside track.
The saga stems from a bitter fight over Paramount’s $111 billion merger with Warner Bros. Discovery. A coalition of twelve state attorneys general, led by California’s Rob Bonta, along with the Writers Guild of America, has sued to block the deal.
CEO David Ellison has drawn a line in the sand: if the lawsuit isn’t resolved before October 1 — the date a self-imposed “ticking fee” of $7 million a day starts accruing — he says Paramount will relocate its headquarters regardless of how the case turns out. Reports indicate the board has already approved a relocation strategy, and the company has narrowed its list to three finalists: Texas, Tennessee, and Georgia.
Why Austin Keeps Coming Up
Of the three, Texas has generated the loudest buzz.
Ellison has reportedly met with Lieutenant Governor Dan Patrick, and Texas Media Production Alliance chair Red Sanders has been coordinating with state economic-development officials on relocation incentives and has said he believed Texas had the infrastructure to support Paramount’s operations. Tennessee’s Department of Economic and Community Development would not discuss the talks, but said it remained open to working with companies exploring investment and growth in the state.
Austin has surfaced as the leading candidate within Texas, though Dallas–Fort Worth and other hubs are also part of the pitch. Nashville has entered the mix too — Paramount representatives reportedly toured a vacant site near downtown for a possible new headquarters — and Georgia remains on the short list given its established production infrastructure.
The financial logic is straightforward. Ellison has estimated the company could save roughly $500 million a year in taxes by leaving California, on top of proceeds from selling its historic studio lots.
A Familiar, Complicated Rivalry
Paramount would be joining a long line of California expatriates.
Chevron, Oracle, Tesla, Charles Schwab, Hewlett Packard Enterprise, and Toyota North America have all relocated headquarters to Texas in recent years, often citing lower taxes and lighter regulation. Yet the Texas-versus-California narrative is messier than it looks — California has, in some recent years, added far more jobs overall than Texas, even amid these high-profile departures. Texas has also poured new money into courting Hollywood specifically, more than doubling its film-incentive budget to around $200–498 million to compete with California, Georgia, and New Mexico for productions.
What’s at Stake
For California, the numbers are stark.
A Los Angeles County-affiliated economic development report estimated that a full relocation could cost the state between 2,750 and 5,550 job-years and $1–2 billion in economic output through 2031, with some estimates running as high as 57,000 jobs and $21 billion in annual output lost.
For Los Angeles, still the world’s entertainment capital, losing an anchor studio would strike at crew jobs, soundstage demand, and the broader production ecosystem.
For Texas — or Nashville or Atlanta — landing Paramount would be a symbolic and economic coup, accelerating a production-hub ambition that’s been building for years but has yet to match Hollywood’s infrastructure or talent depth.
Whether this is a genuine exit or leverage in a legal fight, the outcome will be decided within days.
Relocation Candidates at a Glance
| State | Key Draw | Reported Contact |
|---|---|---|
| Texas | Low taxes, growing film incentives, Austin/DFW real estate | Meetings with Lt. Gov. Dan Patrick |
| Tennessee | Nashville site tour for new HQ | Site visits near downtown Nashville |
| Georgia | Established production infrastructure | Included on short list |
Sources:
- The Hollywood Reporter, “Texas Courts David Ellison as the Paramount Relocation Race Heats Up”
- Deadline, “Paramount To Leave California Amid Antitrust Battle & Stalled Warner Bros Merger”
- Variety, “Paramount Leaving California Would Devastate Los Angeles Economy, Leaked Report Finds”
- Time News, “Paramount Explores Austin Relocation Amid California Antitrust Lawsuit”
- World of Reel, “Paramount to Exit California Amid Warner Bros. Antitrust Fight”
- CBS News, “Chevron Moving Its Headquarters From California to Texas”
- CBS News Texas, “Will Texas’ Boost in Film Incentive Funding Lead to Economic Development?”
A sudden spike in downtown opioid overdoses has prompted Austin police and medics to hit the pavement on East 6th Street, equipping local business owners with life-saving Narcan kits.
Police in Austin and Bastrop are investigating two homicides they say are connected to the same man. Investigators believe he fatally shot two women he had been romantically involved with before killing himself
APD Det. Mendall Edwards:
Two Austin residents face first-degree murder charges following the deadly overdose of a St. Edward’s University student, Austin Police announced.
Investigators say 19-year-old Ethan Westgard was found unresponsive in his campus residence hall on June 11, 2026, and was pronounced dead shortly after CPR efforts failed. The Travis County Medical Examiner’s Office later ruled his death a fatal drug overdose caused by a toxic mix of fentanyl, mitragynine, alprazolam, buprenorphine, and gabapentin.
Following an extensive probe by the APD Narcotics Support Unit, authorities identified Jordan Breck and Alysia Rodriguez-Mabry as the individuals who supplied the fatal narcotics to Westgard. Arrest warrants charging both suspects with first-degree murder were issued on September 8.
Members of the U.S. Marshals Service Lone Star Fugitive Task Force took both suspects into custody this week in Austin—locating Rodriguez-Mabry on September 16 and Breck on September 17. (Austin Police Department)
The lawsuit follows a rare, complete legal turnaround where a Texas appeals court fully acquitted him of criminal charges stemming from a 2019 fatal on-duty shooting.
A routine traffic stop for expired registration led to the arrest of four people last week after Texas DPS troopers uncovered illegal drugs and multiple handguns, including one modified for fully automatic fire.
A joint operation between Cedar Park and Temple police led to the arrest of a suspect wanted for throwing a fully automatic “Glock switch” handgun during a high-speed pursuit in July.
The San Marcos Police Department is investigating the death of a man who was found near San Antonio and Endicott streets early Saturday morning. There is no indication of foul play.
Roughly 100 people were evacuated from a downtown Austin high rise after a fire Thursday night.
According to the Austin Fire Department, the fire sparked sometime before midnight at The Bowie apartments, located at 311 Bowie Street.
Residents were later allowed to return to their units.
First responders battled a brush fire Thursday afternoon in the 3400 block of FM 620.
KXAN Investigator Grace Reader sat down with Austin City Council Member Paige Ellis, who recently learned she will not be able to run for a third term.
Austin ISD plans to redraw the attendance boundaries for Marshall Middle and Linder Elementary School, representing step one in a larger process. (Austin American-Statesman)
There will be intermittent closures on the south shore boardwalk on the Ann and Roy Butler Hike-and-Bike Trail near I-35 today for tree trimming and construction work associated with the TxDOT I-35 Capital Express Central project.
The roadway has reopened. (CBS Austin)
A planned closure tonight by TxDOT has been postponed.
Three of Austin’s most dangerous intersections are about half a mile away from each other.
WEATHER
THURSDAY’S HIGH / LOW TEMPERATURES
AUSTIN-BERGSTROM INETRNATIONAL AIRPORT
CAMP MABRY
5-DAY FORECAST / AUSTIN, TEXAS
Some Central Texas farmers say hot temperatures and a lack of rain are impacting livestock and crops.
BOSQUE COUNTY SHERIFF’S DEPARTMENT:
Size: 1100 acres
Containment: 35%
Structures lost: Unknown
Cause: Unknown/Under Investigation
Location: Approximately 2 miles south of Meridian, 1 mile west of HWY6
Situational Update: The Hydra Fire in Bosque County started on the afternoon of September 14th under elevated fire conditions. Texas A&M Forest Service was requested to provide assistance in the form of additional firefighters and heavy equipment at 1600 and responded quickly. Texas A&M Forest Service is currently in unified command with local departments.
On Tuesday September 15th at approximately 1600 the fire crossed the retardant line constructed by aircraft and the first contingency dozer line. High winds and heavy fuel loading facilitated rapid spread of the fire to the north. When the fire reached a predetermined trigger point, evacuations in and around Meridian began at the direction of Bosque County and City of Meridian.
Accusations of corruption dominated the headlines in the U.S. Senate race in Texas Thursday.
As if the GOP needed another hurdle to overcome this cycle, a statewide GOP candidate turned the Longhorns magical comeback into a litmus test for every party candidate by saying non-white University of Texas students are “the problem.” Host Jeremy Wallace and Austin American-Statesman political reporter John Moritz dig into the backlash against Railroad Commission candidate Bo French and how he’s hijacked Republican messaging at a critical juncture when they need to focus on saving Ken Paxton.
Plus, they catch up with Democrat James Talarico in Houston to show how he’s still working on winning over Black Texans.
And are national Democrats going to help him now that over $80 million in attack ads are being dropped in Texas by super PACs tied to Donald Trump, Elon Musk and others?
Finally, Harris County Judge candidate Orlando Sanchez sits down for an exclusive interview with Jeremy to explain why he thinks he can flip Texas’s largest blue county back to Republicans.
(Episode from September 17, 2026)
San Antonio City Council approved a 3.9% property tax increase Thursday to address a major budget deficit and economic headwinds, marking the city’s first tax hike in over 30 years.
The 7-4 vote divided the council along socio-economic lines, with members from wealthier Northside districts opposing the measure and those representing lower-income districts voting in favor. (Texas Public Radio)
Gov. Greg Abbott ordered the state Department of Transportation to stop issuing permits for automated license plate readers. (Texas Tribune)
The Texas Attorney General’s office will review whether restrictions tied to land sold for future park use were legally changed before a planned data center project in Taylor.
Members of the Trinidad Police Department spoke at a city council meeting this week to express their frustration with the state closing their department.
Bexar County Sheriff Javier Salazar says the number of homicides in unincorporated areas of the county this year has already exceeded the total number of those reported in all of 2025. (Texas Public Radio)
Minnesota officials on Thursday dropped their lawsuit against Gov. Greg Abbott to force the extradition of Christian Castro, a day after arresting the U.S. Immigration and Customs Enforcement officer in Minneapolis.
Actor Brad Maule, a Nacogdoches native and current city councilor, announced he is running for mayor.
Maule portrayed Dr. Tony Jones for two decades on ABC’s General Hospital. He was nominated twice for Daytime Emmy Awards for his work.
SPORTS
HIGH SCHOOL FOOTABALL: Three games last night in area high school football.
Cedar Park 51, New Braunfels 0
San Antonio Cornerstone Christian 48, Lake Travis 35
Seguin 49, Bastrop Cedar Creek 28
The biggest Central Texas high school football matchups scheduled for tonight, Friday, September 18:
Marquee Matchups
- Temple at Hutto (7:00 PM) – A high-scoring non-district rivalry battle between Class 6A Central Texas programs.
- Georgetown East View vs. Austin High (7:30 PM at House Park) – Non-district clash featuring East View’s potent offense heading south to face the Maroons on downtown turf.
- Hendrickson at Killeen (7:00 PM) – Crucial non-district tune-up between two physical 5A contenders.
Local Area Slate
- Brentwood Christian vs. Hill Country Christian (7:00 PM) – Notable local private school showdown in Austin.
- Comfort vs. Johnson City LBJ (7:00 PM) – Key Hill Country non-district matchup.
- Veritas Academy vs. Central Texas Christian (7:00 PM) – TapPS/TAPPS non-district regional contest.
(Most Central Texas Kickoffs set for 7:00 PM or 7:30 PM CST)
MLB: Only nine games and three series left in the regular season.
Houston and Texas are limping to the finish line.
Trevor Story hit a three-run home run off All-Star closer Jacob Latz in the eighth inning, capping a comeback from a three-run deficit as the Boston Red Sox beat Texas 4-3 on Thursday night and dropped the Rangers out of the AL West lead. (Associated Press via MSN)
Yordan Alvarez hit his 40th home run, one of five Houston long balls, and the Houston Astros beat the Kansas City Royals 6-2 on Thursday night to move back over .500 and open a one-game lead over Texas in AL West. (Associated Press via MSN)
ON THE SCHEDULE
COLLEGE FOOTBALL: Fresh off a high-stakes victory that vaulted them back to the No. 1 ranking in the nation, the Texas Longhorns return to Darrell K Royal–Texas Memorial Stadium tomorrow night to host the UTSA Roadrunners in their final non-conference tune-up before SEC play.
The showdown features an intriguing quarterback matchup with deep football lineages: Texas star Arch Manning leads the Longhorns against UTSA’s Owen McCown, son of 18-year NFL veteran Josh McCown. While undefeated Texas looks to clean up turnover issues after a dramatic second-half comeback last week, 2-0 UTSA arrives in Austin aiming to pull off an in-state shocker in the third meeting of the programs’ ongoing regional series. Kickoff is set for 7:00 PM CT.
Texas Longhorns prepare for UTSA with key injury updates and a focus on rising freshman DerRek Cooper. Can Cooper and fellow newcomers make an immediate impact before conference play heats up?
Texas defensive assistant coach Johnny Nansen was arrested on a misdemeanor driving while intoxicated charge and his status for a return to the sideline with the No. 1 Longhorns has not yet been determined, head coach Steve Sarkisian announced Thursday.
Austin police said Nansen, 52, was arrested Wednesday night after officers responded to a three-vehicle wreck about 9 p.m. Nansen was one of the drivers and officers observed “multiple clues of impairment” in standard field sobriety tests, police said, without providing details. (Associated Press)
Texas Monthly BBQ Fest is the ultimate weekend of ‘cue. Enjoy two days of smokey deliciousness in Lockhart, the BBQ Capital of Texas.
Saturday is BBQ World’s Fair—an open-to-the-public downtown street festival complete with guest barbecue joints, market vendors, live fire cooking demos, and live music. Sunday is the legendary Top 50 Picnic—a ticketed vent at Lockhart City Park, featuring 35+ of the best barbecue joints featured on Texas Monthly’s Top 50 List.
