California and 11 States Oppose Paramount Bond Request

The State of California and 11 other states, joined by the Writers Guild of America, have requested that a federal court deny a $1.88 billion bond request from Paramount Skydance. The bond is intended to cover costs resulting from delays in Paramount's $110 billion acquisition of Warner Bros Discovery.

California Attorney General Rob Bonta argued that the financial damages are self-imposed. He noted that Paramount voluntarily agreed to a daily ticking fee for shareholders and pledged not to finalize the merger until an antitrust case is resolved or by June 1, 2027.

Paramount currently faces a $7 million daily fee if the merger does not close by September 30. The company estimates it will have paid $1.3 billion in unrecoverable fees by the time the legal challenge trial concludes in March and briefs are submitted in April.