Paramount Skydance chief David Ellison has told senior executives he is prepared to move the studio out of California from 1 October if state attorney general Rob Bonta refuses to open settlement talks over the antitrust lawsuit blocking the Paramount-Warner Bros. Discovery merger. The threat, confirmed by Variety and first reported by Puck, appears designed to pressure the 12 states suing to halt the deal into negotiating rather than pursuing full litigation, with Ellison telling staff the Paramount Skydance board has already approved the relocation plan.

Ellison reportedly expects Paramount to win the case but wants a quick resolution, partly because 1 October is when a "ticking fee" of $7 million a day, payable to Warner Bros. Discovery shareholders, begins accruing; with the trial not scheduled until March 2027, unpaid liabilities could reach roughly $1.2 billion. Bonta has said any settlement would need to involve "structural" remedies such as divestments rather than behavioural conditions. Ellison outlined a five-year plan to shift most studio jobs out of California, with Los Angeles headquarters moving first and Georgia, Texas and Tennessee under consideration as alternative bases, though no location has yet been chosen. Paramount declined to comment, and Variety has approached the California attorney general's office for a response.