California Vows to Save Hollywood Jobs
California Vows to Save Hollywood Jobs by Encouraging Paramount to Move All 30,000 of Them to Texas Rob Bonta's antitrust crusade promises to protect California's entertainment industry from corporate consolidation by consolidating the entire industry somewhere near Austin By The Hollywood Evacuation Desk LOS ANGELES — California officials have unveiled an ambitious plan to protect Hollywood jobs by making those jobs available exclusively in Texas, Tennessee and Georgia. The initiative follows Attorney General Rob Bonta's lawsuit challenging Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery, a legal battle that could encourage Paramount to relocate much of its operation beyond California. According to a National Review analysis of California's Hollywood lawfare, the state's campaign against the merger may further empty an industry already fleeing high costs, taxes and regulations. The strategy is elegant in the way a piano dropped from a sixth-storey window is elegant: everything moves rapidly, there is a dramatic conclusion, and nobody downstairs benefits. California insists that it must prevent Paramount and Warner Bros. from becoming too powerful. Paramount has responded by considering becoming powerful somewhere else. "California doesn't lose jobs, it graduates them. Sacramento hands every industry a diploma, a subpoena, and a moving truck, then wonders why the ceremony keeps ending in Texas." — Alan Nafzger State officials immediately declared this a victory. "You cannot monopolise California's film industry if California no longer has a film industry," explained one Sacramento policy adviser while placing a commemorative plaque on an empty soundstage. "That is antitrust law 101. We reduce corporate concentration by reducing corporations." The proposed merger would combine two of Hollywood's five major film distributors. California and 11 other states argue that the resulting company could control nearly one-third of theatrical films and basic-cable programming, a concern echoed in the 12-state coalition lawsuit filed against the merger. Paramount argues that consolidation is necessary to compete with technology giants whose streaming platforms already know what viewers will watch before viewers know they are awake. Both sides claim to be protecting consumers, a group traditionally consulted immediately after lawyers, shareholders, politicians, producers, unions, regulators, consultants, lobbyists and the studio executive's personal Pilates instructor. Rob Bonta Announces California's New Entertainment Industry Will Consist Entirely of Lawsuits Attorney General Rob Bonta's office says the merger could reduce competition, eliminate jobs and raise prices. Paramount says blocking the merger could eliminate jobs, raise costs and drive the company out of California. This leaves Californians with two attractive choices: lose jobs because the merger happens or lose jobs because it does not. It is the most authentic Hollywood ending produced in years. California's legal challenge has already generated a spectacular cast: 12 attorneys general, battalions of antitrust lawyers, several anxious unions, thousands of studio employees and one ticking fee that, according to a Los Angeles Business Journal report on the court-ordered merger pause, is reportedly costing Paramount roughly $7 million for every day the transaction remains unfinished after the contractual deadline. At $7 million per day, the lawsuit has become California's most expensive television series. It has no actors, no writers and no confirmed release date, but everyone involved expects seven seasons and a disappointing finale. "We are not delaying the merger," said a wholly imaginary state spokesman. "We are allowing it to develop naturally through 900 depositions, 14 million pages of discovery and the gradual biological retirement of everyone who negotiated it." The case is expected to reach trial in March 2027, giving Hollywood enough time to produce three Batman reboots, cancel four streaming services and relocate Burbank to Nashville. California officials reject suggestions that the proceedings are hostile to business. They merely believe corporations should remain in the state, pay the state's taxes, obey the state's regulations, accept the state's lawsuits and express gratitude that Sacramento has not yet required each film to include an emotionally supportive composting consultant. Paramount Threatens to Leave Hollywood, California Celebrates Protecting What Is No Longer There Paramount has reportedly considered moving major operations to Texas, Tennessee or Georgia if the dispute cannot be settled, a threat CEO David Ellison has framed as an Oct. 1 deadline for settlement talks in a report Bonta himself has called "blackmail". A five-year relocation could affect as many as 30,000 jobs, though company executives say some creative operations may remain in Hollywood. This means Los Angeles could retain the essential parts of filmmaking: abandoned studio gates, celebrity house tours and people in cafés explaining that their screenplay is "basically Succession, but underwater." California leaders dismissed the relocation threat as corporate blackmail. Texas leaders described it as Tuesday. Within minutes of hearing the news, Texas economic-development officials reportedly prepared an incentive package containing tax advantages, inexpensive land and a ceremonial cowboy hat large enough to accommodate the entire Warner Bros. intellectual-property catalogue. "Bring us Batman, Bugs Bunny and whoever still watches basic cable," said one fictional Texas official. "We already have heat, traffic and dramatic political arguments. We're Hollywood without the ocean." Georgia offered experienced film crews and production incentives. Tennessee offered lower operating costs and musicians capable of writing a sad country ballad about leaving California: She took the studio, Sacramento took the fee, Now Batman's shooting somewhere outside Tennessee. California responded by forming a committee to study why businesses prefer states that do not respond to every expansion proposal with a subpoena. Texas Discovers There Is No Law Against Accepting Fleeing Businesses The migration of production out of California is not new. Studios have increasingly filmed in jurisdictions offering cheaper labour, lower taxes and governments that greet producers with incentive packages rather than 640-page environmental assessments concerning the emotional well-being of a shrub. Hollywood remains Hollywood geographically, but economically it has become a travelling circus whose accounting department chooses the tent. A film may be set in Los Angeles, written in New York, shot in Atlanta, edited in Vancouver and financed through Luxembourg. Its stars then attend a premiere in Hollywood and praise California for making it possible. California is now the inspirational parent of the film industry: it takes credit for everything the children accomplish after they move away. Local residents are beginning to notice. In Burbank, eyewitness Earl Mendoza said he recently watched a studio remove equipment from a lot. "At first I thought it was a production about a studio leaving California," Mendoza said. "Then I realised there weren't enough tax incentives to film that here." Another resident, Sheila Brooks, said she supports saving Hollywood from large corporations. "I don't want five studios controlling everything," she explained. "I prefer three streaming companies controlling what I see, one online retailer controlling what I buy and one phone controlling how long I'm permitted to look away from it." This is called consumer choice because the consumer may choose which password to forget. Hollywood's Latest Blockbuster Stars Twelve Attorneys General The lawsuit has everything Hollywood executives normally demand: enormous stakes, conflicting heroes, a ticking clock and a budget nobody can justify. The only thing missing is an audience. The story begins when two ancient studios decide they must merge to survive competition from trillion-dollar technology companies. Twelve attorneys general enter to protect competition by stopping them. The studios threaten to leave. The politicians accuse them of blackmail. The unions fear layoffs under either outcome. Lawyers bill by the hour while telling everyone patience is essential. Working title: Mission: Litigable. California's position rests on the reasonable concern that a combined Paramount–Warner Bros. could reduce competition. Paramount's position rests on the equally reasonable concern that two weakened companies competing separately may eventually become two bankrupt companies competing over office furniture. It resembles forbidding two people from sharing a lifeboat because cooperation might weaken the competitive swimming market. The state sees an emerging monopoly. Paramount sees Netflix, Amazon, Apple, YouTube and countless digital platforms devouring traditional entertainment. Each side is looking at a different screen, which is appropriate because this is Hollywood. The $7 Million Daily Fee Finally Gives California a Reliable Production Budget The reported $7 million daily "ticking fee" attached to the delayed transaction has introduced genuine urgency. Every 24 hours of uncertainty costs roughly as much as a respectable independent film or three minutes of a superhero movie in which a computer-generated building develops self-esteem. At that pace, a month of delay costs approximately $210 million. A year approaches $2.6 billion. Through deductive reasoning, California has discovered that if litigation continues indefinitely, the merger will eventually become too expensive to complete, after which neither company will possess enough money to threaten consumers with higher prices. Economists call this "destroying the village to preserve the competitive retail environment." A fictional survey by the Greater Los Angeles Institute for Asking People Near Food Trucks found that 68 percent of residents wanted Hollywood jobs protected, 21 percent wanted corporations punished and 87 percent had not realised those preferences might conflict. The figures total more than 100 percent because California public policy allows every aspiration to vote twice. One respondent demanded strong antitrust enforcement, abundant studio employment, cheap streaming subscriptions, generous union contracts, higher corporate taxes and no reduction in content. When asked how all six goals could occur simultaneously, he replied, "Movie magic." Sacramento Protects Workers Until Their Moving Vans Arrive The deepest irony is that every faction claims to represent workers. The state wants to prevent merger-related layoffs. Paramount warns that prolonged litigation may trigger relocation. Unions worry that both the acquisition and its obstruction could eliminate employment — a tension visible in the DGA and IATSE's public plea urging Bonta to settle with Paramount on behalf of their members. Workers are therefore being protected from every direction and may need helmets. A studio electrician described the situation as "being hugged by two boa constrictors arguing over which one cares more." If Paramount leaves, officials will insist the corporation abandoned California. If Paramount stays and cuts jobs, officials will say the merger proved them right. If the deal collapses and both companies weaken, everyone will blame streaming. Every possible outcome has already been fitted with a press release. That is modern governance: failure cannot be prevented, but it can be branded. California could attempt negotiation, seek targeted concessions, preserve studio lots, demand theatrical-release guarantees and establish enforceable employment protections. These boring measures might produce a workable compromise, but they would deprive the public of the far more cinematic spectacle of two institutions threatening mutually assured unemployment. Hollywood Prepares Its Final California Production The last film made entirely in California may be a documentary about why films are no longer made entirely in California. It will feature drone footage of empty studio lots, emotional interviews with displaced workers and a solemn narration explaining that nobody could have predicted companies might respond to greater costs by moving somewhere cheaper. Texas will provide the closing shot. There, Paramount executives will cut a ribbon outside a new studio complex while California officials hold a press conference in Los Angeles announcing another investigation into why the ribbon was manufactured out of state. Hollywood may survive. Paramount may merge. California may win its lawsuit. The companies may relocate. The lawyers, at least, will remain fully employed. And perhaps that was the real entertainment industry all along. Ten Humorous Observations About California's Plan to Save Hollywood by Emptying It - California is the only state that can lose an industry while technically winning a lawsuit about it. - Rob Bonta's antitrust case has produced more sequels than the Fast and Furious franchise, with none of the car chases. - Texas didn't have to write a single incentive; California wrote it for them, in legal filings. - A $7 million-a-day ticking fee is the closest thing California has produced to a hit streaming show. - Twelve attorneys general is technically an ensemble cast, and none of them are drawing a studio salary. - The last honest job in Hollywood may soon be narrating the documentary about why Hollywood left. - Burbank soundstages are becoming the most photographed empty rooms in America. - Nashville songwriters are already rhyming "merger" with "Burbank," which should worry everyone. - Sacramento has discovered a foolproof way to prevent a monopoly: prevent the industry. - Somewhere in Austin, a cowboy hat is being fitted for an entire cable-programming catalogue. Disclaimer This satire concerns a genuine antitrust dispute, but its comic quotations, surveys, eyewitnesses and policy announcements are satirical inventions. The underlying merger, lawsuit and relocation debate are real. This piece of satirical journalism is entirely a human collaboration between two sentient beings — the world's oldest tenured professor and a philosophy major turned dairy farmer — neither of whom currently controls one-third of America's basic-cable programming. Read it as satirical news, not as a court filing. SOURCE: National Review — California's Lawfare Could Further Empty Out Hollywood Read the full article















