economy
Paramount seeks bond to cover losses from blocked merger
Paramount Skydance asked a federal judge on Monday to require California, 11 other states, and the Writers Guild of America to post a $1.88 billion bond that would cover the company’s financial losses from its blocked merger with Warner Bros. Discovery.
TL;DR
- Paramount is seeking an $1.88 billion bond from California, 11 other states, and the WGA to cover financial losses due to its blocked merger with Warner Bros. Discovery.
- Paramount argues that if the plaintiffs do not post the bond, the injunction blocking the merger should be dissolved and the transaction allowed to close.
- The company claims it is incurring at least $1.3 billion in losses from the delay, which won't go to trial until March 2027.
- California Attorney General Rob Bonta has accused Paramount of blackmail and is open to settlement talks but not to letting an allegedly illegal deal close without concessions.
- A court hearing is scheduled for September 21 to consider Paramount's motion, which asks for the merger to proceed if the bond is not posted by September 30.