Paramount Demands $1.88 Billion Bond From State AGs Blocking Its Warner Bros. Discovery Merger

Paramount Skydance filed a motion Monday demanding that the 12 state attorneys general suing to stop its proposed $110 billion merger with Warner Bros. Discovery post a $1.88 billion bond to cover the financial costs of the deal's delay. The bond request is based on Paramount's calculation of ticking fees and other expenses accumulating while the litigation drags on.

Under the merger agreement, Paramount must begin paying WBD shareholders an additional 25 cents per share per quarter starting September 30, a cost the company estimates at roughly $650 million per quarter. Paramount said that by the time trial concludes and final briefs are submitted, it will have paid WBD shareholders an unrecoverable $1.3 billion in ticking fees alone. The antitrust suit, led by California Attorney General Rob Bonta, was filed in July and caused Paramount to push the expected deal close into 2027.

A trial is scheduled for March. Paramount argued that federal law requires plaintiffs to provide security as a condition for receiving preliminary relief such as the court-approved injunction, and that without the bond, even a complete legal victory would not recover those losses.