Media|David Ellison Floats Hollywood Exit as States Threaten His Warner Bros. Deal

David Ellison is making it clear that he’ll do just about anything to close his deal to buy Warner Bros. Discovery.

Even, perhaps, taking his Hollywood company far from Hollywood.

Mr. Ellison, Paramount’s chief executive, told his senior leadership team last week that he would begin pulling the company out of California on Oct. 1 if there was no progress toward resolving a lawsuit by state attorneys general seeking to block the deal, according to three people with knowledge of his remarks.

It is unclear whether Mr. Ellison will follow through on the plan, which could put pressure on the California attorney general, one of the chief plaintiffs behind the suit, to come to the negotiating table. Losing a major Hollywood studio would be a blow to the state’s economy and self-identity.

Rob Bonta, the California attorney general, blasted Mr. Ellison on Tuesday for threatening to move. “It is an attempt to blackmail regulators who are daring to enforce the law,” Mr. Bonta said at a conference.

Even floating the idea of a move comes with political risks. Paramount has tried to position itself as a champion of Hollywood, and Mr. Ellison has personally pledged that a combined Paramount-Warner Bros. would release 30 movies in theaters every year.

Still, the comment to the executives highlights Mr. Ellison’s increasing eagerness to get the $111 billion deal over the finish line as soon as possible. The company will owe Warner Bros. shareholders $650 million each quarter, starting in October, until the deal closes. Last week, the judge overseeing the antitrust case set a trial start date for March, at least two payments away.