David Ellison, the head of Paramount, has told company executives that he is considering moving the studio out of California, according to reports. The potential exit comes as state attorneys general have filed a lawsuit that threatens his planned merger with Warner Bros. Discovery.
Ellison's consideration marks a shift from his earlier stance, when he publicly praised the merger as a boost for the state. He had talked up the deal's benefits for California not long before the legal challenge emerged.
The reports say Ellison floated the idea of relocating the company during discussions with Paramount executives. No final decision has been made, and the details of the lawsuit were not specified in the reports.