Paramount demands $1.9 billion from states, citing Warner deal delays

Key Points:

• Paramount Skydance, led by David Ellison, has requested a judge to require California Attorney General Rob Bonta and 11 other states, along with the Writers Guild of America (WGA), to post a bond of up to $1.9 billion to cover costs related to their antitrust lawsuit challenging the Warner Bros. Discovery merger.
• The bond aims to cover Paramount's "ticking fees"—penalties paid to Warner shareholders if the merger is delayed beyond its expected September close—and to pressure the plaintiff states to reconsider their legal challenge, which Paramount argues is misguided and threatens no competition.
• Despite regulatory approvals from 68 jurisdictions, including the Trump Justice Department and Mexican regulators, the merger is held up solely due to the lawsuits from the coalition of Democratic state attorneys general and the WGA.
• Paramount's filing highlights the financial strain and strategic pressure it faces, including potential relocation from California to Tennessee or Texas, while the plaintiff states accuse Paramount of attempting to "blackmail" them to drop the lawsuit.
• The trial is set for March 2, with potential delays extending the case into May, risking expiration of regulatory approvals and triggering a $7 billion breakup fee payable to Warner Bros. Discovery if the deal does not close by June 4.