Paramount seeks $1.88 billion bond from state AGs and Writers Guild in WBD merger antitrust case

Paramount Pictures and its partner Skydance have asked a federal court to order the plaintiffs in the antitrust lawsuits filed by a coalition of state attorneys general and the Writers Guild of America to post a $1.88 billion bond. The motion, filed Monday, argues that the bond is needed to cover the "ticking" fees of roughly $7 million per day that Paramount must pay to Warner Bros. Discovery shareholders if the merger does not close by the end of September, as well as other financing costs.

"Each day that passes after September 30 without the merger closing, Paramount must pay roughly $7 million in ticking fees to Warner Bros. shareholders and additional fees to its financing sources," the filing states. "By the time trial concludes, Paramount will have paid an unrecoverable $1.3 billion in ticking fees alone."

The company says the bond is required by federal law, including the Clayton Act, which mandates security to cover potential harm from halting a transaction. Paramount’s spokesperson told Deadline that the bond reflects the maximum potential financial impact of the litigation and the broader costs of an eight-month delay, such as lost integration benefits and uncertainty for employees.

A trial is scheduled to begin on March 2, 2027, before Judge Araceli Martínez-Olguín in Oakland. The judge previously denied a security requirement in a temporary restraining order, noting that the state plaintiffs were pursuing public-interest claims.

Paramount maintains that it has satisfied all closing conditions for the $111 billion merger, having obtained regulatory approvals in 68 jurisdictions, and that the lawsuits are the only remaining obstacle. The company asserts confidence that the plaintiffs’ case lacks merit and that the transaction will ultimately be approved.