Tennessee is courting David Ellison’s Paramount, The Hollywood Reporter has learned.

Read more Writers Guild Sues to Block Paramount-Warner Bros. Merger

In a letter to Ellison on July 2, Tennessee Deputy Governor Stuart McWhorter urged the Paramount CEO to relocate the studio’s corporate headquarters amid a rift with California over its $111 billion takeover of Warner Bros. Discovery.

“Our success is rooted in fiscal discipline, low taxes, predictable governance, and a steadfast belief that government should be a partner in private-sector growth,” stated the letter. “Companies that choose Tennessee find more than a favorable business climate — they find a state committed to helping them succeed.”

The invitation was delivered as California signaled its intent to block the deal. Paramount has extended what it perceived as an olive branch leading up to the filing of Monday’s lawsuit by committing to produce 30 films per year with a 45-day theatrical window, an offer that was ultimately rejected.

Leaving California isn’t optimal considering Paramount relocated out of New York last year, but a longtime adviser to Ellison tells THR that “everything is on the table.”

It’d be a major blow to production in the state and Los Angeles, where filming levels are near historic lows, if the studio were to reallocate much — or even any significant chunk — of its $30 billion in spending to competing regions like New York, New Jersey, the U.K. or Canada. The studio has several productions shooting in the state, including Matlock, NCIS and Tracker.

A Paramount spokesperson verified the authenticity of the letter but otherwise had no comment.

If it were to move, Paramount would join companies like FedEx, HCA Healthcare and Autozone in the state.

Read more FX and Hulu’s ‘Far Cry’ Adds Steve Buscemi

“As Paramount Skydance writes its next chapter, Tennessee offers a compelling proposition: a state where creativity and technology converge, where talent is developed intentionally, and where innovation is embraced,” McWhorter wrote. “We would welcome the opportunity to share our vision for how Tennessee could help shape the future of Paramount Skydance and its talented team.”

Ellison and his family have deep ties to Tennessee, where he lived on and off for 11 years from 2014 to 2025. He sold his home in the state after Paramount’s bid to acquire Skydance closed.

Also a factor: Plans by Oracle, led by Ellison’s father, to build a massive campus in Nashville. Co-CEO Clay Magouyrk also resides in Tennessee.

For Warner Bros. Discovery, moving headquarters to Tennessee would mean a return to the state. The company used to maintain a massive office complex in Knoxville stemming from the 2017 Scripps Network deal. It sold the property in 2023.

On Monday, a coalition of 12 state attorneys general led by California has sued Paramount to stop its $111 billion takeover of Warner Bros. Discovery.

Days before the lawsuit was filed, Semafor reported that Ellison’s advisers have been pushing the exec to leave California and shift production spend away from the state.

Read more ‘Backrooms’ Is Now Streaming: Where to Watch A24’s Box Office Hit at Home