Skydance Says It’s Committed to L.A., but Threat to Leave Has Proved Potent

Skydance is officially L.A.’s newest Fortune 500 company — but for how long?

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In a message to employees last week, CEO David Ellison said he is committed to keeping the company in Hollywood: “We aren’t going anywhere.”

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But the consent decree between Ellison and 12 state attorneys general does not require him to maintain a headquarters in Los Angeles. And the last two months have proven that the threat to leave can provide powerful leverage should Ellison need anything from state government in the future.

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“I think our attorney general and all of us were in a no-win situation when you had a company that seemed very willing and able to move out of California,” Rep. Laura Friedman told NBC LA. “I personally don’t believe that was an idle threat, and if that had happened, that would be devastating for Los Angeles.”

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Los Angeles has lost a series of corporate headquarters over the last 15 years, including Northrop Grumman, Occidental Petroleum, Toyota Motor North America, AECOM, SpaceX, Public Storage and KB Home. Companies often cite California’s high cost of living, taxes, and hostile regulatory environment in explaining their decisions to leave for Texas or some other state.

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“It’s a parade…

Original source: https://variety.com/

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