New Delhi, July 13 -- LOS ANGELES - Paramount is weighing a move out of California, and taking its $30 billion annual content budget with it, if state Attorney General Rob Bonta follows through on his threat to sue and block the studio's acquisition of Warner Bros. Discovery, according to people familiar with the deliberations.

Paramount chief executive David Ellison and his advisers have discussed relocating the company's headquarters to Bayonne, New Jersey - where the company leased 300,000 square feet of studio space last year - or to Texas, where Chevron, Oracle, and Tesla have already moved after friction with California regulators. The discussions are ongoing and no final decisions have been made.

Ellison is personally resistant t...