Paramount's Threat To Leave CA Over Warner Bros. Merger Is 'Blackmail,' AG Says

California's attorney general says he won't back down from a legal challenge of the proposed merger.

By Chris Lindahl, Patch Staff

Aug 11, 2026 3:18 PM PDT

Paramount and Warner Bros. Discovery agreed last month to delay closing the $81 billion merger deal until either a court rules on the states' challenge or June 1, 2027. (AP Photo/Jae C. Hong)

LOS ANGELES, CA — California Attorney General Rob Bonta on Tuesday accused Paramount of attempting to "blackmail" the state after reports that the entertainment giant could move its studio operations out of California unless officials negotiate a settlement over its proposed merger with Warner Bros. Discovery.

Paramount-Skydance CEO David Ellison told senior executives last week that he is prepared to relocate the combined studio business unless Bonta and other attorneys general begin settlement talks. The move could begin as early as Oct. 1, Variety reported Tuesday.

Paramount has not publicly commented on the reported threat.

"In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through," Bonta wrote Tuesday on X.

In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through.

Paramount has lost the plot as it continues to lose…
— Rob Bonta (@AGRobBonta) August 11, 2026

Bonta is leading a coalition of 12 state attorneys general seeking to block the merger on antitrust grounds. Paramount and Warner Bros. Discovery agreed last month to delay closing the $81 billion deal until either a court rules on the states' challenge or June 1, 2027.

A federal judge has since scheduled a March 2 trial in Oakland.

The states argue the merger would reduce competition in Hollywood and lead to fewer choices for consumers. Paramount has rejected those claims and maintains that the deal would strengthen competition in an entertainment industry increasingly dominated by large technology and streaming companies.

"This illegal merger will result in higher costs, fewer options and fewer people making movies," Bonta said Tuesday. "My office remains committed to stopping illegal consolidation and protecting a vibrant California economy for businesses that play by the rules."

Material from the Associated Press was used in this report.