Paramount seeks nearly $2 billion in damages over the halt to the merger with Warner Bros.
The company requested that the 12 states challenging the deal and the Writers Guild post a bond to cover any losses that might result from the delay in the agreement.
The Paramount logo during a presentation in Las Vegas (File photo)
Paramount Skydance asked a federal judge in California that the 12 states seeking to block its merger with Warner Bros. Discovery and the Writers Guild of America (WGA) to post a bond of $1.88 billion dollars.
The company maintains that the antitrust trial, scheduled for March 2027, is incurring millions in costs and could result in losses it will be unable to recoup if it ultimately obtains authorization to complete the transaction.
The main cost is a clause in the merger agreement that requires Paramount to pay Warner Bros. shareholders approximately $7 million per day if the transaction is not completed by Sep. 30. The charge would amount to approximately $650 million per quarter.
Paramount estimates that those payments could total around $1.3 billion during the delay period. Added to that are $190 million in additional financing costs, which account for the total amount of the requested bond.
The company states that it has already secured the necessary regulatory approvals in 68 jurisdictions and that the antitrust litigation is the main remaining obstacle to closing the deal.
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States reject the request
The attorneys general of the 12 states argue that the acquisition would reduce competition in sectors such as film production, movie exhibition and television, while the WGA warns of a potential negative impact on screenwriters' jobs.
California Attorney General Rob Bonta, rejected Paramount's request and accused the company of trying to shift the cost of a clause it voluntarily accepted when signing the agreement onto the plaintiffs.
Paramount, on the other hand, maintains that the lawsuit is without merit and defends the deal as a transaction that would increase its ability to compete with major entertainment conglomerates.
The trial is scheduled for March 2027, so the battle over the bond could become a new chapter in the standoff between the company and the states before the merits of the merger are debated.
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