Paramount Skydance demands $1.9B bond from states over Warner merger delays

By Meg James Mon, August 17, 2026 at 11:51 AM PDT | 5 min read

David Ellison's Paramount Skydance has asked a judge to compel California Attorney General Rob Bonta and a coalition of 11 other states to set aside up to $1.9 billion as the legal challenge to the Warner Bros. Discovery merger continues.

In a court filing on Monday, Paramount requested that the plaintiff states—including New York, Colorado, Oregon, and Nevada—along with the Writers Guild of America (WGA), post a bond to cover some of the company's costs. These include "ticking fees" Paramount agreed to pay Warner shareholders if the deal extends beyond its anticipated September closing.

Ellison had been confident that the proposed Warner takeover would clear regulatory hurdles without issue. President Trump's Justice Department approved the merger in June, as have dozens of other countries.

The states would not be required to pay the full $1.88 billion upfront. Instead, they must provide a portion of that amount by September 30. Should the Democratic state attorneys general and the WGA lose their lawsuits, they would ultimately be liable for the full sum.

Monday's filing underscores Ellison's growing frustration and the financial pressures caused by the delays. It also continues Paramount's aggressive political campaign to pressure Bonta and the other states into dropping their antitrust lawsuit.

Read more: Inside the states' case to block the Paramount-Warner Bros. merger: 'Each side is taking risks'

Ellison has also floated a proposal to relocate Paramount from its historic home on Melrose Avenue to Tennessee—or possibly Texas—as early as this fall.

"Once again, [Paramount is] trying to blackmail us to get us to back down," Bonta's office said in a statement Monday, criticizing Paramount's latest move.

Paramount did not anticipate such a vigorous challenge from Bonta and the 11 other Democratic state attorneys general, who joined forces with the WGA to block the $111-billion merger of two historic Hollywood studios. If completed, Paramount would also gain control of CNN (in addition to CBS News, which it already owns), HBO, HGTV, and Turner Classic Movies.

Paramount's 23-page filing, signed by former high-profile federal prosecutor Danielle Sassoon, was intended to unsettle the states.

According to a person familiar with Paramount's strategy—who was not authorized to speak publicly—Ellison's company is attempting to create divisions among the plaintiff states by prompting them to reconsider their commitment to a potentially expensive legal battle.

Read more: In Hollywood, image is everything. And David Ellison has an image problem

Because the WGA has separately sued to unravel the deal, Paramount has also asked the judge to require the union to post a bond to cover some of the costs.

In its motion, Paramount cited the Clayton Antitrust Act, which serves as the legal foundation for Bonta's lawsuit. The law includes a provision that allows courts to require plaintiffs to post a bond to cover potential financial harms caused by halting a transaction.

The bond provides a mechanism for Paramount—as the defendant—to recover lost funds if it ultimately prevails in court. Paramount has maintained that the merger would not harm competition and that Bonta's challenge is misguided.

With Mexican regulators approving the deal last week, only the lawsuits from the WGA and Bonta's coalition remain as obstacles.

"We have satisfied all closing conditions under our agreement," Paramount stated.