California’s attorney general rejected Paramount’s request for a $1.88 billion bond on Monday, accusing the entertainment company of attempting to reverse its earlier commitment to delay the Warner Bros. merger. State officials contended that Paramount knowingly entered into the agreement with full understanding of regulatory hurdles and should not be allowed to escape the financial consequences of that decision.
Paramount had sought the bond requirement after a trial date was set for March 2027. The company claims it will incur approximately $1.7 billion in ticking fees payable to Warner Bros. shareholders, plus an additional $190 million in financing costs if the merger closure extends until June. The studio argues that opponents of the deal should bear financial responsibility for any losses it sustains if the transaction ultimately receives approval.
Attorney General Rob Bonta leads a 12-state coalition challenging the merger on competition grounds, asserting it would harm the theatrical and cable television markets. Earlier this year, a judge imposed a temporary block on the deal while allowing the regulatory process to proceed without requiring opponents to post a bond. Paramount has stated it remains confident the merger presents no competitive concerns and plans to defend its position in court.
Originally reported by Variety →
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