Home / Business and Economy / Paramount Battles AG Over $1.88B Merger Bond
Paramount Battles AG Over $1.88B Merger Bond
17 Aug
Summary
- California AG opposes Paramount's $1.88 billion bond request.
- Paramount agreed to delay merger pending antitrust trial.
- AG argues Paramount knew of regulatory review risks.
The California Attorney General's office is strongly opposing Paramount's request for a $1.88 billion bond. Paramount had agreed to postpone its merger with Warner Bros. until after an antitrust trial scheduled for March 2027. The A.G.'s office asserts that Paramount, a sophisticated company, accepted the risks associated with regulatory review when it agreed to pay a daily ticking fee.
Paramount had been hoping for an earlier trial, ideally in November. The company argued that a delay until June 1, 2027, would incur $1.7 billion in ticking fees and $190 million in financing costs. Paramount requested that the states or the Writers Guild of America post a bond to cover these potential losses, should the deal be approved later.
This legal dispute stems from an initial 14-day restraining order issued in July that temporarily blocked the merger. The judge initially waived the bond requirement, citing the states' pursuit of important public interests. A subsequent stipulation to delay the merger, which did not include a bond, was agreed upon by the states, WGA, and Paramount.
