Paramount seeks nearly $2B bond from state AGs suing to block Warner Bros. deal

See more of our coverage in your search results. Add The New York Post on Google Paramount Skydance on Monday asked a federal judge to require a dozen states challenging its acquisition of Warner Bros Discovery to post a $1.88 billion bond to address the costs of delay in completing a tie-up. The company must pay a fee of $7 million a day if the $110 billion merger does not close by Sept. 30. Paramount noted the trial on the states legal challenge is scheduled for March and by the time it concludes and final legal briefs are submitted in April, it will have paid Warner Bros shareholders an unrecoverable $1.3 billion in “ticking fees.” Paramount also noted that the Justice Department’s approval of the deal will expire on Feb. 19. Paramount wants to require the posting of the bond so they can recover losses if a court approves the merger and said the states have “ample resources to post” even a large bond. Paramount and CEO David ​Ellison asked a federal judge to require a dozen states challenging its acquisition of Warner Bros Discovery to post a $1.88 billion bond to address the costs of delay in completing a tie-up. Bloomberg via Getty Images In addition to $1.7 billion in “ticking fees” through June 1, Paramount would incur $190 million in incremental financing costs by delaying the merger until June 2027. Paramount offered the fees in its pursuit of Warner Bros. In late July, Paramount agreed to pause its acquisition of Warner Bros until after a ruling on a challenge by states to the deal California and 11 states sued on July 13 , arguing the deal would create a media behemoth with ​the power to raise prices in film and television. The Writers Guild of America has also sued to challenge the deal. Similar merger challenges have taken an average of eight months for a judge to rule, a Reuters review of recent cases found. The lawsuit, filed in Oakland federal court, threatens to derail Paramount CEO David ​Ellison’s bid to transform his company into a major rival of Netflix and Disney. Getty Images The lawsuit, filed in Oakland federal court, threatens to derail Paramount CEO David ​Ellison’s bid to transform his company into a major rival of Netflix and Disney. Paramount said regulatory entities representing at least 68 countries have approved or declined to challenge the merger after reviewing it and the lawsuits are the only hurdle to the deal closing.