Paramount Seeks $1.88B Bond for Delayed Merger Costs

Paramount Skydance has asked a federal court to require the twelve states and the Writers Guild of America suing to block its $111 billion acquisition of Warner Bros. Discovery to post a $1.88 billion bond to cover the company's financial losses from the delayed merger. The motion, filed Monday, August 17, 2026, comes as the antitrust trial is not scheduled to begin until March 2, 2027.

Paramount argues that under the Clayton Antitrust Act, plaintiffs should cover potential damages from halting a transaction for litigation. The company said it will incur at least $1.3 billion in unrecoverable "ticking fees" payable to Warner Bros. shareholders if the deal remains unclosed after September 30, 2026. These fees, agreed to in the merger contract, amount to approximately $7 million per day. Paramount's filing states that by the time a trial concludes, the company will have also incurred $190 million in incremental financing costs. Without a bond, Paramount contends, even a victory in court would not restore these losses.

California Attorney General Rob Bonta, whose office is leading the multistate coalition, responded that Paramount and Warner Bros. knew the agreement included costly...