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[BUSINESS] · United States · 11 sources

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Paramount Skydance demands $1.88B bond amid Warner Bros. merger legal battle

Paramount Skydance has filed a motion in federal court demanding that the Writers Guild of America (WGA) and 12 state attorneys general post a $1.88 billion bond. The company argues this bond is necessary to cover potential damages and financing costs resulting from the legal delays to its $111 billion acquisition of Warner Bros. Discovery.

The merger is currently stalled by antitrust litigation led by California Attorney General Rob Bonta. Because the deal has not closed, Paramount faces a daily “ticking fee” of approximately $7 million payable to Warner Bros. Discovery shareholders, a cost that begins accruing on October 1. Paramount contends that if the plaintiffs successfully pause the transaction but ultimately lose the antitrust challenge at trial, the plaintiffs should be responsible for the resulting financial injuries.

In response, the states argue that Paramount voluntarily agreed to the merger deadline and the associated ticking fees. Paramount is also reportedly considering selling cable and real estate assets to reach a settlement. A hearing on the bond motion is scheduled for September 24, while the full antitrust trial is set to begin on March 2, 2027.

Entities

Araceli Martinez-Olguin · New Line Cinema · Paramount · Paramount Skydance · Rob Bonta · Skydance Corp. · Warner Bros. Discovery · Writers Guild of America

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