Paramount Warns California AG, Others About What Happens If Antitrust Suit Fails

Key Points:

• Paramount Skydance is demanding the Writers Guild of America, California, and 11 other states post a nearly $2 billion bond amid the ongoing antitrust battle over its $111 billion merger with Warner Bros Discovery, as the company faces a $7 million-a-day ticking fee starting October 1.
• Paramount argues that the ticking fee, rare and costly, was agreed upon during a competitive bidding war with Netflix, confident the merger complies with U.S. and foreign antitrust laws, and stresses that over 60 jurisdictions have approved the deal.
• The company claims it may suffer $1.88 billion in damages if wrongfully enjoined from closing the merger, which it aims to complete by September 30, 2026, and insists that if the plaintiffs want the transaction paused, they must accept the financial consequences if their challenge fails.
• California Attorney General Rob Bonta and other state officials continue to oppose the merger, seeking structural remedies and rejecting Paramount’s bond request, with a key court hearing on the bond issue scheduled for September 24.
• The dispute has sparked tensions involving major industry figures and economic concerns for Los Angeles County, with settlement talks stalled and allegations exchanged, while Paramount hints at possibly relocating out of California if settlement talks do not proceed.