Paramount seeks $1.9 billion bond from states suing over Warner Bros. Discovery merger
Paramount has asked a federal judge to require the states challenging its merger with Warner Bros. Discovery to post a $1.9 billion bond, citing costly “ticking fees” that would accrue if the deal is delayed.
Paramount Pictures filed a motion on Monday asking U.S. District Judge Araceli Martinez-Olguín to require the coalition of 12 state attorneys general that sued to block its merger with Warner Bros. Discovery to post a $1.9 billion bond. The company argues that “ticking fees” of about $7 million per day, which would be triggered if the merger does not close by September 30, could total $1.3 billion in unrecoverable losses by the time a court rules.
The motion notes that the merger agreement, signed last winter, includes these fees and remains in effect until June 2027. Paramount says the states and the Writers’ Guild of America, the other plaintiff, should be responsible for the bond if the company ultimately prevails, allowing it to recoup the fees and other costs.
Judge Martinez-Olguín previously declined to impose a bond, finding that the states were pursuing the suit to enforce important public interests. An antitrust trial is scheduled for March, and the parties have agreed to skip a preliminary injunction hearing and proceed directly to trial.
"What’s more, Paramount itself stipulated to the timing it is now protesting — they agreed to the dates and did not request a bond as a condition of agreeing not to close until after the trial, and potentially as late as June 2027. Now, they’re trying to get a do-over," said a spokesperson for California Attorney General Rob Bonta, who leads the coalition.
Legal analysts have suggested the bond request may be intended to pressure the states into a pre-trial settlement or to set the stage for a rapid appeals process.