Paramount Requests States, WGA Post $1.88B Bond to Cover Financial Losses While Warner Bros. Merger Remains on Hold
Variety • • business
Key Points:
- Paramount Skydance has requested a $1.88 billion bond from plaintiffs in the antitrust lawsuits to cover losses due to delays in its merger with Warner Bros. Discovery, with the bond payable if Paramount prevails.
- The merger trial is scheduled for March 2, 2027, and the bond request is based on potential "ticking fees" of about $7 million per day plus financing costs caused by the delay.
- Twelve states, led by California Attorney General Rob Bonta, and the Writers Guild of America sued to block the $111 billion merger, citing concerns over reduced competition and fewer buyers for writers’ work.
- Paramount argues the bond is required under federal law to compensate for financial harm from halting the merger, while Bonta emphasizes the states’ focus on structural remedies and winning at trial rather than settling.
- Paramount remains confident in its position, aiming to close the merger and deliver benefits to consumers and industry workers, despite ongoing legal challenges.
