A coalition of 12 states is challenging the Paramount-WBD merger, arguing that it would reduce competition in movie distribution and cable licensing|Patrick Pelster|CC BY-SA 3.0 DE

Paramount Skydance could leave California as soon as October, according to reports.

CEO David Ellison is reportedly considering the move unless Attorney General Rob Bonta agrees to settlement talks over his lawsuit seeking to block Paramount’s $110 billion acquisition of Warner Bros. Discovery.

Bonta dismissed the move as an effort to pressure the state into allowing an illegal deal.

A coalition of 12 states is challenging the merger, arguing that it would reduce competition in movie distribution and cable licensing.

The case is slated to go to trial in March.