California Attorney General Rob Bonta on Tuesday accused entertainment giant Paramount Skydance of attempting to “blackmail” the state after reports emerged that the company could consider leaving Hollywood if it is unable to complete its planned acquisition of Warner Bros.

“The group is now back with a new attempt to blackmail the state into allowing an illegal deal to go through,” Bonta said in a post on X, adding that “it won’t work.”

Paramount Skydance had appeared to gain the upper hand in the bidding war against Netflix to acquire Warner Bros, particularly after receiving clearance from the U.S. Department of Justice, which raised no objections to the proposed merger.

However, the $111 billion transaction has faced strong opposition from parts of Hollywood, amid concerns that combining two of the country’s five largest film distributors could lead to significant job losses across the entertainment industry.

California and 11 other U.S. states filed a lawsuit in July seeking to block the acquisition, arguing that the deal would violate antitrust laws. A judge subsequently ruled that the states’ arguments were strong enough to warrant a trial, which is scheduled for March. The merger remains suspended in the meantime.

Paramount Skydance CEO David Ellison had committed to paying Warner Bros shareholders $7 million per day if the transaction is not completed by September 30.

Facing that deadline, Ellison has reportedly unveiled a five-year plan to relocate the company out of California starting October 1, according to Variety, which cited sources familiar with the matter.

The company’s headquarters could potentially be moved to Georgia, Texas or Tennessee, according to the report.

A departure from California could trigger an exodus of creative talent, as many industry professionals may be reluctant to leave the traditional heart of the U.S. film industry.

If the acquisition goes ahead, Paramount Skydance would control two major news networks, CBS News and CNN, two major film studios, Paramount Pictures and Warner Bros, as well as two streaming platforms, Paramount+ and HBO Max.