Paramount Skydance has filed a motion in federal court requesting that California, 11 other states, and the Writers Guild of America post a $1.88 billion bond to cover financial losses from its blocked merger with Warner Bros. Discovery. The company claims it is incurring at least $1.3 billion in losses due to the trial, which is set to begin in March 2027. Paramount argues that the bond is necessary to cover costs incurred from the delay caused by the court's order not to proceed with the merger.
In the motion, Paramount's counsel stated that the merger does not harm competition in any market and that the injunction is causing significant financial strain on the company. Paramount had initially aimed to finalize the $111 billion acquisition by September 30 to avoid accruing $7 million in daily fees, which could exceed $1 billion by the time of the trial.
The request for a bond is supported by the Clayton Antitrust Act of 1914, which allows defendants to seek such a bond in antitrust cases. A spokesperson for Paramount noted that the bond request reflects the potential costs associated with the merger delay, including impacts on content production and employee stability.
The bond request follows a recent escalation in the legal proceedings, with Paramount CEO David Ellison reportedly threatening to relocate the company out of California if settlement discussions do not progress. California Attorney General Rob Bonta has characterized this threat as an attempt to pressure the state into allowing the merger to proceed. Bonta has indicated a willingness to negotiate a settlement if concessions are made by Paramount and Warner Bros.
The case represents the last regulatory hurdle for the merger, which has received approval from over 60 foreign countries and the Department of Justice. U.S. District Judge Araceli Martinez-Olguin is scheduled to hear the bond motion on September 21.