The Paramount Photos brand is displayed on a water tower in Los Angeles, California, on August 6, 2026.
Michael Yanow | Nurphoto | Getty Photographs
Paramount Skydance will search to power the states holding up its merger with Warner Bros. Discovery to pay for the charges and prices related to the delay, in response to a brand new submitting within the antitrust case Monday.
Paramount is requesting a $1.88 billion bond that might be posted by the states behind the lawsuit. In July, a dozen state attorneys normal led by California’s Rob Bonta filed to problem the proposed $110 billion merger between Paramount and WBD.
The proposed deal would mix two storied movie studios — Paramount and Warner Bros. — in addition to put collectively a sprawling portfolio of pay TV networks within the U.S. and streaming platforms HBO Max and Paramount+.
The group of state attorneys normal stated in its preliminary submitting that the merger would violate the Clayton Antitrust Act, which is the more-than-100-year-old legislation that prohibits anticompetitive mergers and acquisitions.
In an announcement from a Paramount spokesperson, the corporate pointed to the Clayton Antitrust Act and different federal legislation that calls on the plaintiffs — or states on this case — being required “to publish a bond overlaying the potential hurt from halting a transaction to litigate.”
“Right here, each month of delay carries substantial and quantifiable monetary penalties,” Paramount stated in its assertion.
A consultant from Bonta’s workplace did not instantly reply to a request for touch upon Monday.
Paramount has acquired regulatory approvals from the Antitrust Division of the U.S. Division of Justice, in addition to all different world jurisdictions wanted to maneuver ahead with the merger. However final month, Paramount agreed to delay the proposed acquisition to as late as June 2027 whereas the state AGs’ case heads to trial.
Paramount lengthy deliberate to have the deal closed by the top of September. The delay might show pricey for Paramount.
Paramount agreed to a so-called ticking payment beneath the phrases of the merger settlement, which means that starting Sept. 30 it will pay WBD shareholders a further 25 cents per share, per quarter, till the deal closes. The quantity might add as much as roughly $650 million in money worth per quarter.
“By the point trial concludes and the events submit their ultimate briefs, Paramount could have paid Warner Bros. shareholders an unrecoverable $1.3 billion in ticking charges alone,” Paramount stated within the submitting. “Delay additionally threatens to nullify the regulatory approvals that Defendants have already spent months securing.”
“Absent safety, even an entire victory on the deserves wouldn’t restore a greenback of these extraordinary losses. That’s exactly why federal legislation requires plaintiffs to supply safety as a situation for receiving preliminary reduction such because the court-approved order,” the submitting says.
In Paramount’s assertion, the corporate stated that the $1.88 billion quantity is a “easy calculation of the utmost potential ticking consideration and financing prices from this litigation.”
Nevertheless, the assertion goes on so as to add that these aren’t the one prices related to delaying the deal: “By advantage of what is going to be no less than an eight-month delay in closing, there might be no integration and no ramped-up funding in content material, manufacturing, and artistic expertise by the mixed firm. After all, as well as, staff of each Paramount and WBD are additionally harmed by the uncertainties brought on by the delay.”
Along with California, the group of states suing to dam the merger contains Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
