David Ellison's Paramount wants its WBD merger challengers to put up nearly $1.9 billion
Paramount Skydance is requesting that states and labor unions suing to block its Warner Bros. Discovery merger post a $1.9 billion bond. The company argues this is necessary to cover 'ticking fees' and lost savings incurred during the legal delay.
Why it matters
This legal maneuver tests the boundaries of how companies can mitigate financial losses caused by antitrust litigation and regulatory challenges.
Paramount Skydance CEO David Ellison wants California Attorney General Rob Bonta's state and its counterparts to post a bond to cover the merger delay costs. Angela Weiss/AFP via Getty Images; Mel Melcon / Los Angeles Times via Getty Images Paramount Skydance wants the states and writers suing to stop its WBD deal to post a nearly $1.9 billion bond. David Ellison's company will owe about $7 million per day that the deal doesn't close, starting October 1. An entertainment lawyer said it's "very unlikely" that a judge will agree with Paramount's argument. David Ellison wants those challenging his Warner Bros. Discovery deal — including California and 11 other states — to be prepared to pay nearly $1.9 billion if they lose their lawsuit. Paramount Skydance's WBD acquisition is on pause after lawsuits from 12 states and the Writers Guild of America, which argued the deal is anticompetitive .
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