Paramount demands a $1.9 billion bond from 12 states over lawsuit against merger with Warner Bros
Kyiv • UNN
Paramount Skydance Corp. is demanding a $1.88 billion bond from 12 states over an antitrust lawsuit against its merger with Warner Bros. Discovery. The case is scheduled for trial in March.
Paramount Skydance Corp. is demanding that the 12 states that filed an antitrust lawsuit against its planned merger with Warner Bros. Discovery post a $1.88 billion bond. Bloomberg reports, writes UNN.
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The company said that federal law requires a bond to be posted to cover potential losses resulting from suspending the deal during the court proceedings. Paramount calculated the amount by taking into account the maximum fees it would have to pay under the deal if it is not completed by October 1, as well as litigation costs.
Here, each month of delay entails significant and quantifiable financial consequences
Judge Araceli Martínez-Olguín already declined in July to require the posting of a bond, noting that the states had demonstrated that they filed the lawsuit to protect important public interests.
States challenge the $110 billion merger
The trial in the case is scheduled for March. If the merger is completed after September 30, Paramount will have to pay Warner Bros. shareholders approximately $650 million per quarter until the deal is completed.
US court extends pause in Paramount and Warner Bros. $110 billion deal24.07.26, 05:37 • 4567 views
Paramount has already received regulatory approval in 68 jurisdictions worldwide to acquire Warner Bros. for $110 billion. The U.S. Department of Justice has also approved the deal.
At the same time, a group of states led by California Attorney General Rob Bonta argues that the merger could harm competition in the film and television industries and lead to job cuts in the entertainment industry.