Paramount seeks $1.88 billion bond as merger deadline approaches, L.A. County report warns of job losses
Paramount Pictures asked a federal court to approve a $1.88 billion bond ahead of its planned $31 billion merger with Warner Bros. Discovery, while a Los Angeles County report projects thousands of job losses if the deal proceeds.
A federal judge in Oakland scheduled a hearing on Paramount Pictures’ request for a $1.88 billion bond to be decided by September 24, just before a $7 million-per-day fee to Warner Bros. Discovery (WBD) shareholders is set to begin on October 1. The bond is intended to cover potential "extraordinary losses" that could arise from the July 13 antitrust lawsuit filed by several states.
The merger, valued at roughly $31 billion, would combine Paramount with WBD and is slated to close by June 4, after which Paramount would owe a $7 billion termination fee if the transaction falls through. The deal is financed through a mix of equity and debt, with Larry Ellison personally guaranteeing about $45.7 billion in equity commitments and banks led by Citibank, Bank of America and Apollo providing roughly $49 billion in debt financing.
Separately, the Los Angeles County Department of Economic Opportunity released an updated analysis warning that the merger could eliminate up to 15,567 corporate positions that overlap across the two companies, including 2,495 jobs in the county. The report estimates that, over a three-year integration period, the loss could affect 4,500 film and TV jobs in Los Angeles County, 2,661 indirect jobs in supporting businesses, and 3,204 induced jobs tied to local spending. The projected economic impact includes $1.26 billion in lost wages, $2.78 billion in reduced economic value, $4.06 billion in lower business output, and $547 million in foregone tax revenue.
Paramount’s spokesperson said the county’s findings confirm the company’s view that the industry is in decline and that its plan to invest $30 billion annually in production and release at least 30 films a year is intended to create jobs and strengthen the sector. California Attorney General Rob Bonta, posting on X, reiterated his claim that the proposed merger would cause significant job loss and economic damage.
The court hearing also addressed procedural matters, including the selection of alternative magistrate judges for a future settlement conference. No comment was received from Paramount or the California Attorney General’s office regarding the latest developments. Paramount’s shares closed at $10.60 on Wednesday, down more than 20% year-to-date.