Paramount asks US judge to require $1.88 billion bond from states over Warner Bros merger
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Paramount Skydance asked a U.S. judge on Monday to require 12 states challenging its acquisition of Warner Bros Discovery to post a $1.88 billion bond. The company said the bond would cover delay costs, including $7 million a day in ticking fees if the $110 billion merger does not close by September 30.
Key Facts
- The trial on the states' legal challenge is scheduled for March, and Paramount said it will have paid Warner Bros shareholders an unrecoverable $1.3 billion in ticking fees by the time final briefs are filed in April.
- The U.S. Justice Department's approval of the merger will expire on February 19, Paramount said.
- Paramount estimates it would incur $1.7 billion in ticking fees through June 1 and $190 million in incremental financing costs if the deal is delayed until June 2027.
- Paramount said regulatory entities representing at least 68 countries have approved or declined to challenge the merger, leaving the lawsuits as the only hurdle.
The Bond Request
Paramount asked the court to impose the bond because the states' legal challenge is delaying the $110 billion acquisition of Warner Bros Discovery. The company said it would incur $1.7 billion in ticking fees through June 1 and $190 million in incremental financing costs if the merger is delayed until June 2027. Paramount also noted it must pay $7 million a day if the deal does not close by September 30.
State Legal Challenge
California and 11 other states sued Paramount on July 13, arguing the deal would create a media behemoth able to raise prices in film and television. The Writers Guild of America has also filed a suit challenging the transaction. The trial on the states' challenge is scheduled for March, with final briefs expected in April.
Regulatory Review
Paramount said regulatory entities representing at least 68 countries have approved or declined to challenge the merger after reviewing it. The company said the lawsuits are the only hurdle to closing the deal. The U.S. Justice Department's approval will expire on February 19.
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Paramount asks US judge to require $1.88 billion bond from states over Warner Bros merger
