Paramount's boss is weighing whether to rip CBS News right out of Manhattan. David Ellison, the company's CEO, is reportedly exploring the nuclear option of relocating the legendary broadcast operation as his legal war with attorneys general in two states heats up to a boiling point.
Here's what's going on. California AG Rob Bonta is spearheading a group of 12 mostly blue state AGs trying to torpedo Paramount's massive $110 billion purchase of Warner Bros. Discovery. New York AG Letitia James is part of that coalition. And Ellison? He's not taking it lying down. The billionaire is floating the idea of pulling CBS News out of the Big Apple AND moving Paramount's legendary Hollywood studio out of California if Bonta refuses to come to the negotiating table.
That's right, folks. The guy is basically threatening to take his ball and go home, and it would be a financial earthquake for both cities.
CBS News employs roughly 1,200 people around the globe, with a huge chunk stationed in New York City. One media executive familiar with the company's plans told the New York Post that Ellison could potentially shift news operations down to Atlanta, where CNN already calls home. The move would come in anticipation of ultimately prevailing in the courtroom showdown with the state attorneys general.
But hold on, because not everyone thinks this is a done deal. A separate source with close ties to Paramount described these scenarios as "contingency plans" rather than the primary game plan. Everything hinges on whether Bonta's coalition will agree to some kind of settlement.
The financial upside for Team Ellison is staggering. The broadcast facility currently housing CBS News could fetch "a couple of billion dollars" if they decide to sell it off and relocate. That's generational wealth just sitting in a building.
Sources with knowledge of the situation believe Bonta is pushing to get a CNN spin-off, a Warner Bros. asset, carved out before any deal goes through. Ellison reportedly has zero interest in that arrangement right now. Despite all the tension, Paramount insiders say they remain hopeful about reaching a settlement. Ellison publicly set an October 1, 2026 deadline for Bonta to start talking.
A federal judge threw a wrench into things by scheduling the courtroom clash for March 2027. Paramount wanted a November 2026 trial date to wrap things up quickly, so that ruling landed like a punch to the gut. Ellison responded by penning an op-ed in The New York Times, pledging he would serve as a "trusted steward" of CNN.
Meanwhile, the drama is causing heartburn inside the Democratic Party itself. California Governor Gavin Newsom is reportedly sweating over Bonta's lawsuit, cautioning that killing this media merger could cost Los Angeles a ton of jobs. So now you've got Democrats fighting Democrats while a billionaire holds two iconic American cities hostage with the threat of a corporate exodus.
No formal settlement discussions are taking place at this time, and both sides remain deeply divided over what concessions might look like. Stay tuned, because this soap opera is far from over.
Read more American news stories at: The American Tribune
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