4 hrs ago
California Attorney General’s Stance Adds Pressure to Paramount-Warner Deal
Paramount was trying to complete a deal with Warner.
If the deal did not close by the end of September, Paramount faced fees of $650 million each quarter.
The money would go to Warner shareholders.
A trial was scheduled for next March.
By then, the fees could grow to nearly $2 billion.
Bonta said he believed the deal was illegal.
He said significant changes to the deal were needed before he and other states would consider approving it.
The possible fees gave Bonta leverage in the dispute.
Paramount faced quarterly ticking fees of $650 million if the deal did not close by the end of September.
The fees were payable to Warner shareholders.
A trial was scheduled to start next March.
The fees could approach $2 billion if the deal remained unclosed until then.
Bonta called the deal illegal and said significant structural changes were needed before he and other states would consider approving it.
- Who
- Paramount, Warner shareholders, and Bonta, who spoke for himself and other states.
- What
- Paramount faced potential quarterly ticking fees while Bonta opposed the deal and sought significant structural changes.
- Where
- When
- The deal was to close by the end of September; trial was scheduled to start next March.
- Why
- The fees would accrue if the deal did not close, while Bonta said the deal was illegal and required significant structural changes.
Bonta and other states
Paramount’s deal position
Whether the deal should proceed
Bonta and other states
Bonta called the deal illegal and said significant structural changes were needed before he and other states would consider approving it.
Paramount’s deal position
The excerpt does not state Paramount’s view on Bonta’s objections; it says Paramount faced substantial ticking fees if the deal did not close.
Key facts
- Potential ticking fees
- $650 million per quarter
- Fee recipients
- Warner shareholders
- Closing deadline mentioned
- End of September
- Trial start
- Next March
- Potential total fees
- Could approach $2 billion
- Bonta’s stated position
- Called the deal illegal and said significant structural changes were needed before he and other states would consider approving it.
Sources
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