California, Writers Guild Oppose Paramount's $1.88 Billion Bond Request
California and 11 states join the Writers Guild in opposing Paramount's $1.88 billion bond request, citing voluntary delay terms.
The State of California, along with 11 other states, has joined the Writers Guild of America in asking a federal court to reject Paramount Skydance's request for a $1.88 billion bond. The bond is intended to cover costs the studio says it will incur from delays in completing its acquisition of Warner Bros Discovery.
In a court filing on Monday, California argued that any financial damages Paramount faces from the delayed closing are self-imposed. The state noted that the studio voluntarily offered to pay Warner Bros shareholders a daily "ticking fee" as part of its bid to secure the merger. Paramount also agreed not to close the deal until the antitrust case is resolved, or until June 1, 2027, whichever comes first.
California Attorney General Rob Bonta argued that Paramount now wishes to offload responsibility for these costs. He said the request for a bond should be denied.
Under the current terms, Paramount must pay $7 million per day if the $110 billion merger does not close by September 30. The trial on the states' legal challenge is scheduled for March, with final legal briefs due in April. By that point, Paramount estimates it will have paid Warner Bros shareholders an unrecoverable $1.3 billion.