Paramount Skydance told a federal court Tuesday that the 12 states and the Writers Guild of America suing to block its takeover of Warner Bros. Discovery should be required to post $1.88 billion in bond, reiterating a request the company first filed last month. The demand is meant to cover potential losses Paramount says it will incur if the $111 billion merger remains frozen until the antitrust case concludes next spring.
U.S. District Judge Araceli Martinez-Olguin, who is overseeing the litigation, has scheduled a Sept. 24 hearing to weigh the bond request. She has also set a trial date of March 2, 2027, and Paramount agreed to pause the deal’s closing until that trial wraps, after the judge initially granted a 28-day restraining order and waived a bond requirement at that stage.
Paramount argues the bond is grounded in the Clayton Act, the federal antitrust statute underlying both lawsuits, which the company says entitles a defendant to compensation if a delay caused by litigation ultimately proves unwarranted. The company points to a $7 million-a-day “ticking fee” it agreed to pay Warner Bros. Discovery shareholders starting Oct. 1 until the merger closes, along with other costs tied to the extended timeline. A Paramount spokesperson said Tuesday that if the plaintiffs want the transaction paused while their case proceeds, they need to accept responsibility for the financial fallout should their challenge fail.
The states, led by California Attorney General Rob Bonta, pushed back in an Aug. 31 filing, arguing Paramount created its own financial exposure by agreeing to the ticking fee and now wants to shift that burden onto public agencies and a labor union. They contend the court did nothing improper in accepting the delay and question why taxpayers or a nonprofit union should effectively underwrite the acquisition.
The states sued in July, alleging the merger would curb competition in theatrical films, blockbuster releases and basic cable television, while the WGA separately argues the deal would shrink the pool of buyers for writers’ work. Paramount has said the merger has already cleared regulatory review in 68 countries and has urged the states to settle rather than proceed to trial.
