An ongoing antitrust lawsuit backed by California Attorney General Rob Bonta over Paramount’s acquisition of Warner Bros Discovery (WBD) has at least one of those companies considering a relocation of its corporate headquarters out of the Golden State.
If that happens, one of the places where Paramount might settle down is Georgia, a southern state that has dangled generous tax incentives and other perks in front of film and television companies over the past few years and where its entertainment footprint is starting to rival that of Hollywood.
For years, Georgia has offered film and TV producers a 20 percent base, transferable film and TV tax credit for eligible productions that take place in the state, with a possible 10 percent production uplift for approved projects.
The program applies to feature films, series, pilots, movies for television, televised commercials, music videos and qualified interactive entertainment projects. State officials says those programs are among the most-competitive incentives in the country, one that has been proven reliable over the years.
Georgia is one of several states that Paramount CEO David Ellison and other executives are considering for a possible relocation of its corporate headquarters if California and other states continue to press on with their antitrust lawsuit, which has delayed the closing of the WBD deal. Texas and Tennessee are also among the contenders, as are New Mexico and New Jersey.
Texas does not offer direct tax credits to film and TV producers, but does offer a financial grant program for eligible projects that shoot in the state. Tennessee offers cash grant rebate on qualified local production expenditures through its state entertainment commission, and also hands out credits to offset franchise and excise taxes that might be charged on a local or regional basis.
New Jersey has a film and digital media tax credit that is similar to the one offered in Georgia, while New Mexico has tax credits and a unique arrangement that allows eligible film and TV productions to receive a rebate of up to 40 percent on qualified in-state expenditures, including crew wages. New Mexico’s program is funded through a $140 million appropriations bill that runs through the end of 2026.
But Georgia’s tax incentive is considered among the mos-giving, with the state covering a wide range of productions from major motion pictures to game shows and even independent creations like music videos, documentaries and creator-driven content.
Georgia requires covered productions to offer their content across multiple markets within and outside the state. There are some limitations to their offerings: The tax credits don’t extend to live news programming, sports broadcasts or Internet-only advertising spots.
Still, the incentives that Georgia does offer could be attractive to Paramount if Ellison pursues a broader relocation strategy. Reports published earlier this week by a number of trade publications, including Variety, say Ellison has already drawn up a potential five-year relocation plan that could shift most of the company’s jobs out of California. Paramount’s headquarters would be the first to relocate under the plan.
A move to Georgia would not necessarily mean Paramount would abandon Hollywood entirely — the company is likely to maintain a smaller film and TV production studio and related offices to continue supporting existing and a few future projects. But it would still lead to substantial job losses in the entertainment industry, one of the biggest drivers of revenue for California.
A number of entertainment-focused unions have already called for California and Paramount to settle their differences and reach an out-of-court resolution based largely on concerns about job cuts.
Ellison seems equally interested in settling the matter: In a press release on Friday, he said the deal already received sign-offs from nearly 70 other jurisdictions, including tough regulators in Europe, based on the perspective that the deal increases competition in the media and entertainment space.
“We are grateful that competition authorities in nearly 70 jurisdictions worldwide have independently and thoroughly reviewed this transaction and reached the same conclusion: it is pro-competitive, pro-consumer and pro-worker,” Ellison said.
For now, the lawsuit moves forward. Paramount has agreed to indefinitely delay the merger while the case proceeds in court, but Ellison has made it clear that if a resolution is not reached soon, it will have repercussions for all involved.
