Paramount Seeks $1.88 Billion Bond From Merger Challengers

Paramount has requested that a federal judge require a coalition of 12 U.S. states and the Writers Guild of America to post a bond of approximately $1.88 billion. The company seeks the financial safeguard to cover losses resulting from antitrust lawsuits blocking its $110 billion to $111 billion acquisition of Warner Bros. Discovery.

The motion argues that the legal delays trigger a ticking fee of roughly $7 million per day owed to Warner shareholders starting October 1, 2026. Paramount estimates these unrecoverable payments could reach $1.3 billion by the start of the trial on March 2, 2027, or as high as $1.69 billion by June 2027. The company also cited $190 million in incremental financing costs and the risk that U.S. Department of Justice approval could expire on February 19.

California Attorney General Rob Bonta, leading the state coalition, rejected the request and characterized the move as an attempt to blackmail the states into a settlement. Bonta argued that Paramount entered the process with eyes wide open and is now trying to put California taxpayers on the hook for costs the company willfully agreed to. In response to the litigation, Paramount CEO David Ellison has suggested moving the company's headquarters from California to Texas or Tennessee.

Judge Araceli Martinez-Olguin previously waived the bond requirement, citing the plaintiffs' effort to enforce public interests. The states and the union maintain that the merger would illegally reduce competition in basic cable and blockbuster films, limiting buyers for writers' work.