economy
Paramount seeks $1.88 billion bond from state AGs to cover costs of WBD merger delay
Paramount agreed to delay its proposed acquisition of WBD to as late as June 2027 while the state AGs' case heads to trial.
TL;DR
- Paramount Pictures is seeking a $1.88 billion bond from states that filed an antitrust lawsuit against its proposed merger with Warner Bros. Discovery.
- The bond is intended to cover costs incurred due to the delayed closure of the $110 billion merger, including ticking fees.
- A trial concerning the matter is scheduled for March, with the merger's potential closing date extended as late as June 2027.
- Paramount cites federal law requiring plaintiffs to post a bond for potential harm from transaction halts, noting significant quantifiable financial consequences of delay.
- States, including California, argue that Paramount willingly agreed to the merger contract, including its provisions and timeline, and is responsible for the situation.