California would lose between $10.6 billion and $21.2 billion in annual economic output if Paramount Skydance decided to move its headquarters completely out of the state, according to a preliminary report.

The significant economic losses would only come if Paramount doesn’t come to a negotiated settlement with California and 11 other states by Oct. 1. The coalition of Democratic state attorneys general is suing to block Paramount’s proposed merger with Warner Bros. Discovery. The antitrust lawsuit is the only obstacle the two studios need to surmount to close the $111 billion deal.

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