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Paramount Skydance has renewed its request for a $1.88 billion bond to be posted by twelve states and the Writers Guild of America as a condition for delaying its proposed acquisition of Warner Bros. Discovery. The entertainment company filed the motion in federal court on Tuesday, arguing that the bond is necessary to protect against financial losses stemming from a daily “ticking fee” of $7 million owed to Warner Bros. shareholders beginning October 1 until the transaction closes.
State attorneys general, led by California’s Rob Bonta, have opposed the bond requirement, contending that Paramount should bear the financial consequences of its own contractual commitments. The states argue the company is attempting to shift responsibility for agreed-upon expenses onto the plaintiffs in the antitrust litigation. A federal judge has scheduled the merger trial to begin March 2, 2027, with the deal on hold pending the case outcome.
Paramount maintains that legal precedent under the Clayton Act requires plaintiffs challenging mergers to post bonds protecting defendants from damages if their challenge fails. The company asserts that the states and union cannot pursue litigation while avoiding financial accountability for blocking a transaction that the company claims it is prepared to complete. U.S. District Judge Araceli Martinez-Olguin has scheduled a September 24 hearing to consider Paramount’s bond request.
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Originally reported by Variety →
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