Mucahithan Avcioglu
17 August 2026•Update: 17 August 2026
Paramount Skydance has requested that 12 US states challenging its planned acquisition of Warner Bros. Discovery post a $1.88 billion bond to cover potential losses resulting from delays to the transaction, the company said Monday.
Paramount said the amount was calculated based on the maximum potential “ticking fees” payable under the merger agreement if the transaction does not close before Oct. 1, as well as financing costs associated with the litigation.
“Every month of delay carries substantial and quantifiable financial consequences,” the company said.
Under the merger agreement, Paramount would have to pay Warner Bros. shareholders approximately $650 million for each quarter the transaction remains unfinished after Sept. 30.
Paramount argued that the Clayton Act and other federal laws require plaintiffs seeking to halt a transaction to provide a bond covering the potential harm caused by the delay, allowing the affected party to recover damages if the plaintiffs ultimately lose.
The company said it had satisfied all closing requirements after securing regulatory clearances in 68 jurisdictions, adding that the two pending lawsuits were the only remaining barriers to completing the deal.
“We remain confident that plaintiffs’ case is without merit and will defend our pro-competitive transaction in court,” Paramount said.
US District Judge Araceli Martinez-Olguin previously declined to require a bond in July, concluding that the states had brought the lawsuit to enforce important public interests.
A trial is scheduled to begin in March 2027.
The legal challenge is being led by California Attorney General Rob Bonta and joined by 11 other states. The coalition argues that the merger could weaken competition in film and television distribution, reduce content choices and threaten entertainment industry jobs.
The US Justice Department, however, closed its investigation in June after determining that the transaction was unlikely to harm competition or American consumers in streaming, traditional television or film production and distribution.
Paramount’s acquisition of Warner Bros. Discovery is valued at about $110 billion and would bring major entertainment properties, including CBS, CNN, HBO, Paramount Pictures and Warner Bros. studios, under the same corporate group.
