Paramount, Warner Bros. Discovery secure iconic LA studios for 5 years

The merger between Paramount Pictures and Warner Bros. Discovery has just been wrapped up with a settlement that will keep the two studios’ iconic Los Angeles lot and Burbank complex on the books for five years.

A federal anti‑trust lawsuit filed by 12 state attorneys general is now resolved, ensuring that the combined company will not sell or close either property.

The agreement also requires that both lots be operated in a manner consistent with past practices, including leasing to third parties and continuing film and television production.

California Attorney General Rob Bonta made the announcement in a press conference Monday morning.

He said, “We wanted those lots to be protected, they are part of the broader solution, and I believe that the future of this merged company is in Los Angeles for many years to come for the foreseeable future.” Bonta also clarified that the Paramount headquarters, currently in Los Angeles, would remain there.

“I believe that will be the case, that they will have their headquarters in California for the foreseeable future,” he added. “It’s not part of the deal, I believe there will be public statements.”

The settlement document released Monday did not include a statement from Paramount’s leadership. The company memo issued that day emphasized the new entity’s commitment to producing more than thirty movies annually and expanding U.S. film production. A few hours later, Chairman and CEO David Ellison issued a clarification.

“Let me be clear: the newly merged company will be headquartered in Los Angeles,” he said. “We aren’t going anywhere.

Our history is here and this is where our future is being built.” The comment ended a week‑long tension that had erupted after an alleged ultimatum that Paramount would relocate its headquarters to Tennessee, Texas or Georgia if the lawsuit was not settled by October 1, when a costly ticking fee to WBD would take effect.

## Background & Context

The anti‑trust case was brought by a coalition of twelve state attorneys general who argued that the merger would give the new company excessive market power in the U.S. film and television sector.

The consent decree that settles the suit outlines key operational commitments, including preserving both the Paramount lot on Melrose Avenue and Warner Bros. lot in Burbank for a minimum of five years.

The agreement also mandates that neither property be sold or closed and that they continue to be operated in a manner consistent with past practices, such as leasing space to third parties and continuing production of movies and TV shows.

## What People Are Saying

California Attorney General Rob Bonta’s remarks on Monday were the first public acknowledgment that the merger will stay rooted in Los Angeles.

Bonta said, “We wanted those lots to be protected, they are part of the broader solution, and I believe that the future of this merged company is in Los Angeles for many years to come for the foreseeable future.” The announcement was followed by a brief silence from Paramount’s top executives.

Hours later, Chairman David Ellison stepped into the conversation to reassure staff and investors. “Let me be clear: the newly merged company will be headquartered in Los Angeles,” he said, adding that the studio’s history remains its foundation.

## What Happens Next

With the settlement in place, the combined Paramount‑Warner Bros. Discovery entity can now focus on operational plans. The consent decree specifies that both lots must remain open for at least five years, and the new company is obligated to maintain production levels of more than thirty movies annually, as noted in the Monday memo.

The agreement also forecloses any sale or closure of the properties and requires continued leasing to third parties. Paramount’s leadership has indicated that it will keep its Los Angeles headquarters, thereby ending a brief period of uncertainty that began after the merger was stalled by the federal lawsuit.

The settlement confirms that Hollywood’s biggest studio merger will remain anchored in Los Angeles, keeping its iconic lots and production pipeline intact for the foreseeable future.