California Attorney General Rob Bonta has hit back at Paramount Skydance chief David Ellison's threat to relocate the studio out of California, branding it a "blackmail" attempt that "won't work." Bonta leads a 12-state coalition suing to block Paramount's takeover of Warner Bros. Discovery on antitrust grounds, and the row marks the latest escalation in a bitter standoff over the merger's future.

Ellison reportedly stunned senior Paramount executives last week by telling them he would begin exiting California from 1 October unless Bonta agrees to settlement talks, with the Paramount Skydance board said to have approved the move; Warner Bros. could also be relocated if the merger closes. No destination has been settled on, though Georgia, Texas and Tennessee are said to be under consideration. Bonta accused Paramount of repeatedly shifting tactics — pausing the merger, requesting a November trial, and now threatening relocation — insisting the company "has lost the plot as it continues to lose in court," while Ellison maintains he is open to an out-of-court solution but remains confident of winning at trial.