Archive · 18 Aug 2026
Paramount Demands $1.88B Bond From AGs In Merger Suit
Paramount is a big company that makes movies and TV shows.
It wants to join together with another big company called Warner Bros.
Discovery.
Some state leaders and a writers' group are trying to stop the merger.
They sued in court because they think the merger is not fair.
Because of the lawsuit, the merger is being delayed.
Paramount says the delay costs it about $7 million every day.
So Paramount asked the court to make the people suing them pay $1.88 billion upfront.
That money would help pay for the costs of the delay.
A judge will decide whether that is fair.
The trial is scheduled to start in March 2027.
Paramount filed a motion seeking a $1.88 billion bond from state attorneys general and the Writers Guild of America in the antitrust suit over its $111 billion merger with Warner Bros. Discovery.
The bond would cover roughly $7 million-a-day 'ticking fees' Paramount Skydance must pay WBD shareholders starting October 1, 2026, plus other transaction costs.
Paramount says it will have paid an unrecoverable $1.3 billion in ticking fees alone by the time the trial, set for March 2, 2027, concludes.
Judge Araceli Martínez-Olguín, who previously waived the security requirement, will decide whether to grant the bond.
Nearly 70 countries and jurisdictions, including the DOJ, UK, EU, Canada, and Mexico, have approved the merger, while the AGs and WGA remain the lone objectors.
- Who
- Paramount Skydance and CEO David Ellison; state attorneys general including California's Rob Bonta and New York's Letitia James; the Writers Guild of America; and Judge Araceli Martínez-Olguín.
- What
- Paramount filed a motion seeking a $1.88 billion bond from plaintiffs to cover costs of the antitrust suit blocking its $111 billion merger with Warner Bros. Discovery.
- When
- The motion was filed Monday; ticking fees begin October 1, 2026; trial is set for March 2, 2027.
- Where
- Federal court in Oakland, California.
- Why
- To cover the roughly $7 million-a-day ticking fees and other costs Paramount says it will incur while the merger is delayed by the antitrust litigation.
Paramount Skydance
State AGs & WGA
Bond requirement
Paramount Skydance
Federal law requires plaintiffs to post a bond covering potential harm from halting a transaction, and Paramount is statutorily entitled to the $1.88 billion bond.
State AGs & WGA
The judge waived the security requirement because the plaintiff states bring suit to enforce important public interests.
Costs of delay
Paramount Skydance
Every month of delay carries substantial financial consequences, including $7 million-a-day ticking fees totaling $1.3 billion by trial and lost synergies.
State AGs & WGA
Plaintiffs argue the ticking fee is a 'self-imposed' injury and thus outside the scope of compensable damages.
Merger merits
Paramount Skydance
The merger has been approved by nearly 70 countries and jurisdictions and will enable integration and investment in content and creative talent.
State AGs & WGA
The AGs and WGA oppose the merger on antitrust grounds; California AG Rob Bonta called the promise of 30 movies a year an 'old, stale promise.'
- Bond requested
- $1.88 billion
- Deal value
- $111 billion
- Ticking fee
- Roughly $7 million per day
- Ticking fees by trial end
- $1.3 billion (unrecoverable)
- Trial start
- March 2, 2027
- Judge
- Araceli Martínez-Olguín (Oakland)
- Merger approvals
- Nearly 70 countries/jurisdictions, including DOJ, UK, EU, Canada, Mexico
- PSKY shares
- Down 24% year to date