Paramount Seeks $1.88 Billion in Security Due to Delay in Merger with Warner Bros. Discovery
Paramount Skydance is asking that U.S. states challenging its merger with Warner Bros. Discovery be required to post a bond of $1.88 billion. The company wants to cover costs and payments related to the delay of the deal, according to a new filing in the antitrust case, CNBC reports.
In July, attorneys general from 12 states, led by California Attorney General Rob Bonta, filed a lawsuit against the proposed $110 billion merger. The deal calls for the merger of Paramount and Warner Bros. film studios, U.S. pay-TV networks, and the streaming platforms HBO Max and Paramount+.
Paramount has received approval from the Antitrust Division of the U.S. Department of Justice and all other necessary regulatory approvals in other jurisdictions. However, last month the company agreed to postpone the acquisition pending the outcome of the states’ lawsuit—until no later than June 2027.
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Paramount had previously planned to close the deal by the end of September. Under the terms of the merger agreement, starting September 30, it will pay Warner Bros. Discovery shareholders an additional 25 cents per share each quarter until the deal closes. The total value of such payments could reach approximately $650 million in cash per quarter.
If the deal falls through for regulatory reasons, Paramount must pay Warner Bros. Discovery $7 billion in compensation for terminating the agreement.
