Paramount Seeks $2 Billion Bond as Antitrust Fight Over Warner Bros. Deal Continues
Paramount Pictures asked a federal court to require a $2 billion bond from California and other states challenging its merger with Warner Bros. Discovery, while the parties await a September hearing.
Paramount Pictures filed a brief on Tuesday asking a U.S. district court to enforce a nearly $2 billion bond from California, the Writers Guild of America and 11 other states that are contesting the company’s proposed merger with Warner Bros. Discovery. The request comes as the parties await a September 24 hearing on the bond issue and a trial scheduled for March 2027.
Paramount argued that a $7 million-a-day “ticking fee” imposed on the merger would only apply if the deal were ultimately blocked, and that the fee is “extraordinarily rare” and “extraordinarily expensive.” The company said it added the fee during a competitive bidding process with Netflix, confident that the transaction complies with U.S. and foreign antitrust laws.
“If plaintiffs insist that this transaction is paused during the pendency of their lawsuit, they must accept the financial consequences if their challenge ultimately fails,” Paramount said in a separate statement.
State attorneys general, led by California’s Rob Bonta, and the Writers Guild of America rejected the motion, calling it meritless and insisting the court will hear their arguments at the September hearing.
“We believe Paramount’s motion has no merit and look forward to presenting our case in court at the September 24th hearing,” the California Department of Justice said.
The bond request follows a prior agreement that the merger would not close until June 1, 2027, or until all legal challenges are resolved. A federal judge has set an October 1 date for the start of the ticking fees, which could total more than $635 million per quarter if the merger is halted.
The dispute has drawn attention from industry figures and local officials, with some warning of potential job losses and reduced tax revenue for Los Angeles County if the merger proceeds.
Paramount clarified that it is not asking the court to lift the no-close order, but only to enforce the bond that would protect its financial interests while litigation continues.