Paramount Skydance is actively searching for office space in Nashville, signaling serious consideration of shifting at least some operations out of Los Angeles.

A report published Wednesday detailed the company's pursuit of about 400,000 square feet that could be occupied in two to three years. No suitable existing buildings match the timeline, prompting outreach to developers about new construction and tours of multi-acre parcels outside downtown.

The effort comes as Paramount navigates legal opposition in California to its roughly $111 billion acquisition of Warner Bros. Discovery. A coalition of 12 states led by California Attorney General Rob Bonta filed suit alleging antitrust violations that could reduce competition in film distribution and cable programming.

Tennessee officials have actively recruited the company. In July, Deputy Gov. and Economic and Community Development Commissioner Stuart McWhorter sent a letter to CEO David Ellison highlighting the state's low taxes, business-friendly policies, talent pool, and creative heritage. Gov. Bill Lee publicly welcomed the studio, noting Tennessee's environment for innovation and creativity.

Ellison has personal ties to the state, having lived there intermittently for 11 years. His father, Oracle co-founder Larry Ellison, is developing a major campus in Nashville.

The potential relocation aligns with broader trends of companies leaving California due to high costs and regulations. Los Angeles County lost more than 42,000 film and television jobs between 2022 and 2024. Other states like Georgia and Texas have also been mentioned as options.

Paramount has not confirmed plans, and representatives declined to comment on the real estate activity. The company already maintains a presence in Nashville through Country Music Television.