Brief
Skydance CEO pledges to keep headquarters in Los Angeles amid leverage threat
Skydance’s commitment follows a consent decree that does not bind the firm to stay, prompting political debate over corporate flight from California.
By Felo News Desk · Published
Skydance Media announced that its chief executive, David Ellison, reaffirmed the company’s intention to remain in Los Angeles, saying, “We aren’t going anywhere.” The statement came in an internal memo to staff last week.
Ellison’s pledge arrives despite a consent decree signed with twelve state attorneys general that does not obligate Skydance to keep its headquarters in the city. The agreement bars the sale of the Paramount and Warner Bros. lots for five years and requires increased production volume, but it omits any location requirement.
Rep. Laura Friedman told NBC LA that the threat of a move has given the company “powerful leverage” with state officials, adding that an actual departure would be “devastating for Los Angeles.” She noted that Los Angeles has lost several major corporate headquarters over the past 15 years, including Northrop Grumman and SpaceX.
Industry observers such as Larry Kosmont described the pattern of corporate exits as “a parade of horribles,” while Sarah Bohn of the Public Policy Institute of California warned that California has not improved its tax and regulatory environment compared with other states.
Attorney General Rob Bonta, announcing the consent decree, said he believes the merged company’s future lies in Los Angeles. Earlier, Ellison had written to Rep. Friedman and Sen. Adam Schiff promising the combined firm would “stay true to our roots” in Southern California.
Key facts
- Skydance CEO David Ellison said the company will not leave Los Angeles. (variety.com)
- The consent decree with 12 state attorneys general does not require Skydance to keep its headquarters in L.A. (variety.com)
- Rep. Laura Friedman said the threat of leaving gives Skydance leverage with state officials. (variety.com)
- Attorney General Rob Bonta said the merged company's future is in Los Angeles. (variety.com)
Sources
- [1] variety.com — originally reported as “Skydance Says It’s Committed to L. A. , But Threat to Leave Has Proved Potent”
