Paramount Seeks $1.88 Billion Bond From State AGs Over Merger Delay
· Business · CNBC, Deadline, Variety
Paramount Skydance has filed a request in an antitrust case demanding a $1.88 billion bond from state attorneys general who are challenging its proposed $110 billion merger with Warner Bros. Discovery. A dozen state attorneys general led by California's Rob Bonta filed a lawsuit in July to block the combination of the two film studios and their streaming services, HBO Max and Paramount+. Paramount agreed last month to delay the acquisition until June 2027 while the antitrust trial proceeds. The delay triggers ticking fees requiring Paramount to pay WBD shareholders 25 cents per share per quarter, amounting to roughly $650 million quarterly. Paramount argues that the bond is necessary to recover these mounting financial losses if the antitrust challenge ultimately fails.
Why it matters
Media industry consolidation hangs in the balance as legal costs and mandatory shareholder ticking fees mount during prolonged antitrust litigation.
Read the original report — CNBC
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