Paramount Skydance has asked a federal judge to force the 12 states suing to block its $111 billion merger with Warner Bros. Discovery, plus the Writers Guild of America, to post a bond of roughly $1.88 billion to cover the company’s own losses from the delay. California Attorney General Rob Bonta, who is leading the states’ antitrust case, has called the demand blackmail.
The states, led by Bonta, argue the combined company would control more than a third of major movie and cable programming output and sued in July to stop the deal. Paramount CEO David Ellison responded by threatening to move the historic studio’s headquarters out of California entirely by October 1st if the merger keeps getting held up.
Why Does Paramount Want States to Post a Billion Dollar Bond?
The merger agreement itself includes a ticking fee, roughly $7 million a day, that Paramount owes Warner Bros. Discovery shareholders once a closing deadline passes without the deal completing. Paramount’s court filing argues the states and the WGA, not Paramount, should be on the hook for that cost since their lawsuit is what’s holding up the closing.
Bonta’s office rejects that framing entirely, pointing out that Paramount and Warner Bros. Discovery are sophisticated companies that agreed to the ticking fee themselves, fully aware the deal would face regulatory review. “It didn’t work the first time, on the eve of our July lawsuit, and it won’t work this time,” Bonta wrote.
A trial in the states’ case is currently scheduled for March 2027, meaning the fight over who pays for the delay is likely to keep escalating well before anyone gets an answer on whether the merger itself is allowed to close. More on the bond request is available from Variety.
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