Paramount Hits California & WGA With $1.9B Warner Deal Demand

Paramount Skydance has asked a federal judge to require California, 11 other states, and the Writers Guild of America to post a $1.88 billion bond as they try to block its purchase of Warner Bros. Discovery. The request puts a price on the states’ antitrust challenge and increases pressure on California Attorney General Rob Bonta, who is leading the lawsuit against David Ellison’s proposed $111 billion deal. Paramount says it could face major costs if the merger is delayed past its planned closing date. In a court filing, Paramount asked the judge to end an agreement preventing the deal from closing unless the plaintiffs post a $1,884,726,092.73 bond by Sept. 30. The company says the money would cover losses tied to the lawsuit if the states and the guild fail in court. The biggest cost is a so-called ticking fee. Paramount agreed to pay Warner Bros. Discovery shareholders about $6.97 million a day if the merger has not closed by Oct. 1. The company says those payments could reach about $1.69 billion by June 1, 2027, the period covered in its court request. The states argue the merger would reduce competition in Hollywood and put workers, consumers, and the film business at risk. T...