Paramount Asks Courts to Require $1.88 Billion Bond From States Blocking Warner Bros. Deal

Overview

• Paramount filed a court motion on Monday asking a judge to force the twelve states that sued to block its roughly $110 billion takeover of Warner Bros. Discovery to post a $1.88 billion bond to cover delay-related costs.
• The company says it already faces about $1.3 billion in irreversible payments tied to delays and would incur $7 million in daily obligations if the deal does not close by the contractual September 30 deadline.
• Paramount frames the bond as a legal tool to prevent plaintiffs from imposing an undue financial burden on the buyer while the states’ antitrust claims proceed to trial, which the company says is scheduled for March.
• If a court approves the bond demand, the states would need to provide a large cash guarantee or equivalent security that Paramount says would compensate it for wrongful-delay losses if the merger is later allowed to close.
• The dispute highlights wider consequences for employees, shareholders and media markets because delay or blockage could change compensation to WBD shareholders, slow planned business integration and prolong uncertainty for workers and partners.