Paramount seeks $1.88 billion bond from states over Warner Bros. Discovery merger delay

Paramount Global and Skydance have asked a federal court to require the states challenging their $110 billion merger with Warner Bros. Discovery to post a $1.88 billion bond. The bond would cover fees, financing costs and other damages the companies say will accrue while the antitrust case proceeds.

The request follows a lawsuit filed in July by a coalition of twelve state attorneys general, led by California, alleging the deal would breach the Clayton Antitrust Act. Paramount noted that it has already secured approvals from the U.S. Justice Department and other global regulators, but agreed in February to extend the closing deadline to as late as June 2027 as the case moves toward trial.

"Here, every month of delay carries substantial and quantifiable financial consequences," the company said in a statement.

Paramount warned that the delay triggers a "ticking fee" provision, requiring an additional 25 cents per Warner Bros. Discovery share each quarter after September 30, potentially amounting to about $650 million per quarter. The company estimates that by the time the trial ends, it could have paid roughly $1.3 billion in such fees, plus further costs from lost integration opportunities and employee uncertainty.

The filing argues that federal law obliges plaintiffs to provide security when seeking preliminary relief, and that without a bond, any eventual victory would not compensate Paramount for the projected losses. The states involved in the lawsuit include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.