Tennessee has taken action to collaborate with Paramount, owned by David Ellison. According to information obtained by The Hollywood Reporter, Tennessee's Deputy Governor Stuart McWhorter wrote a letter to Ellison on July 2, urging him to consider moving the studio's headquarters to Tennessee due to disputes with California. This disagreement is related to Warner Bros. Discovery's $111 billion acquisition.

The letter stated, "Our success is rooted in an unwavering belief that financial discipline, low taxes, predictable governance, and the government being a partner in private sector growth are essential." McWhorter emphasized that companies choosing Tennessee find not only a favorable business environment but also a state determined to support their success.

While California indicated its intent to block the deal, the studio proposed a compromise with a commitment to produce 30 films. However, this offer fell short of the studio's expectations and was rejected. Paramount's departure from California is not an ideal situation, especially after moving from New York last year. However, a close advisor to Ellison noted, "Everything is on the table," highlighting the seriousness of the situation.

If Paramount moves to Tennessee, it would be a significant blow to productions in California. The studio currently has many productions, including Matlock, NCIS, and Tracker, shooting in California. A spokesperson confirmed the authenticity of Paramount's letter but did not provide further comment. If the move occurs, Paramount will join companies like FedEx, HCA Healthcare, and Autozone in Tennessee.