Economic Impact of Paramount Skydance in California

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• Create Date October 7, 2026
• Last Updated October 7, 2026

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Paramount Skydance Corporation (Paramount) and Warner Bros. Discovery (WBD) signed a definitive merger agreement on February 27, 2026, in a transaction valued at roughly $77 billion in equity. In August 2026, Paramount commissioned LAEDC’s Institute for Applied Economics (IAE) to estimate the economic and fiscal impacts to California of two of the outcomes at stake in the negotiations at the time. The first is the additional feature film production the state could expect under Paramount’s production commitment. The second is the loss of Paramount’s headquarters and other operations without a settlement. Using publicly reported information current as of September 10, 2026, historical data from the California Film Commission, and the IMPLAN economic modeling platform, IAE estimated impacts over a five-year period from October 1, 2026, through September 30, 2031. IAE was also asked to provide context on the current state of the entertainment industry in Los Angeles and California.