Paramount chief David Ellison has told senior staff the company will begin relocating out of California from 1 October unless its proposed merger with Warner Bros. Discovery closes by the end of September, marking a sharp reversal from earlier pledges to keep both studios rooted in the state. The threat appears aimed at California attorney general Rob Bonta, who leads a 12-state antitrust lawsuit seeking to block the merger, and has intensified debate over whether Ellison's stance is a genuine strategic shift or a pressure tactic in the deal negotiations.

Ellison had previously assured Democratic lawmakers Sen. Adam Schiff and Rep. Laura Friedman that he would preserve jobs and keep Paramount's "deep roots" in Southern California, but has since grown frustrated with state politics amid the legal battle. Bonta's office has called the relocation threat "blackmail," while Paramount this week asked the court to require the states and the Writers Guild of America, who are also suing to stop the merger, to post a $1.88 billion bond. With Mexican regulators having already cleared the deal, the state lawsuits and the WGA case remain the last obstacles before a trial scheduled for March 2027.