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Paramount Skydance seeks $1.88B bond from state AGs to cover WBD merger delay costs
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Paramount Skydance is requesting a $1.88 billion bond from the dozen state attorneys general, led by California's Rob Bonta, who are challenging its proposed $110 billion merger with Warner Bros. Discovery. The bond would cover costs and fees incurred due to the delay caused by the antitrust lawsuit filed in July. Paramount has already received U.S. DOJ and global regulatory approvals but agreed to delay the deal until June 2027 while the case proceeds to trial. The delay triggers a ticking fee of 25 cents per share per quarter for WBD shareholders, potentially costing Paramount about $650 million per quarter. If the merger collapses due to regulatory issues, Paramount would owe a $7 billion breakup fee.
Source report
The Paramount Pictures logo is displayed on a water tower in Los Angeles, California, on August 6, 2026. Michael Yanow | Nurphoto | Getty Images
Paramount Skydance will seek to force the states holding up its merger with Warner Bros. Discovery to pay for the fees and costs associated with the delay, according to a new filing in the antitrust case Monday.
Key Details
- Bond request: Paramount is requesting a $1.88 billion bond that would be paid by the states behind the lawsuit.
- Background: In July, a dozen state attorneys general led by California's Rob Bonta filed to challenge the proposed $110 billion merger between Paramount and WBD.
- Deal scope: The proposed deal would combine two storied film studios — Paramount and Warner Bros. — as well as assemble a sprawling portfolio of U.S. pay TV networks and streaming platforms HBO Max and Paramount+.
Regulatory Status
Paramount has received regulatory approvals from:
- The Antitrust Division of the U.S. Department of Justice
- All other global jurisdictions needed to proceed with the merger
However, last month, Paramount agreed to delay the proposed acquisition to as late as June 2027 while the state AGs' case heads to trial.
Financial Implications
Paramount long planned to have the deal closed by the end of September. The delay could prove costly:
- Ticking fee: Under the merger agreement, beginning Sept. 30, Paramount would pay WBD shareholders an additional 25 cents per share, per quarter, until the deal closes. This could amount to roughly $650 million in cash value per quarter.
- Breakup fee: If the deal falls apart due to regulatory concerns, Paramount would owe WBD a $7 billion breakup fee.
This story is developing. Please check back for updates.
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Part of this Story
Paramount Skydance-WBD Merger Blocked by California-Led Antitrust Lawsuit