Paramount seeks $1.88B bond from state AGs to cover WBD merger delay costs
CNBC • • entertainment
Key Points:
- Paramount Skydance is seeking a $1.88 billion bond from states challenging its merger with Warner Bros. Discovery to cover fees and costs caused by the delay in closing the deal.
- A coalition of a dozen state attorneys general, led by California's Rob Bonta, filed an antitrust lawsuit in July, arguing the $110 billion merger violates the Clayton Antitrust Act by potentially reducing competition.
- Paramount has obtained regulatory approvals from the U.S. Department of Justice and other global bodies but agreed to delay the merger until as late as June 2027 due to the ongoing litigation.
- The delay triggers substantial financial consequences for Paramount, including ticking fees of 25 cents per share per quarter paid to WBD shareholders, potentially totaling $1.3 billion by trial conclusion.
- Paramount emphasizes that the delay also hinders integration, investment in content and talent, and creates uncertainty for employees, underscoring the need for the states to post security as required by federal law.
