Paramount Seeks $1.88B Bond From AGs Over Merger Lawsuit
Paramount is asking a judge to require states challenging its $110 billion merger to post a $1.88 billion bond to cover potential costs.Summary
Paramount Skydance has requested a U.S. judge to compel the states challenging its acquisition of Warner Bros Discovery to post a $1.88 billion bond. The company argues that delaying the merger could cost it $1.7 billion in "ticking fees" by June 1, and an additional $190 million in financing costs if the deal is delayed until 2027. Paramount must pay $7 million daily if the merger does not close by September 30. The states, led by California, sued in July to block the deal, arguing it would create a media behemoth with the power to raise prices. Paramount contends that the states have "ample resources to post" the bond and that the ticking fees were voluntarily agreed upon by the companies. The lawsuit, filed in Oakland federal court, threatens to derail CEO David Ellison's bid to transform Paramount into a major rival of Netflix and Disney.
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