Paramount Skydance reiterated its demand in a court filing that 12 states and the Writers Guild of America post a $1.88 billion bond as security to cover losses Paramount would incur if the deal is not completed until after the trial concludes next spring. The demand comes amid lawsuits filed by the states and the WGA seeking to block the merger over antitrust concerns.
U.S. District Judge Araceli Martinez-Olguin, who is hearing the cases, has set a Sept. 24 hearing to consider Paramount’s bond request. In July, Martinez-Olguin temporarily halted the deal and scheduled a trial for March, months beyond its target closing date of late September.
Under the agreement, Warner Bros. Discovery shareholders are owed roughly $650 million per quarter, or $6.9 million per day, if the merger has not closed by Oct. 1. The bond represents the maximum potential payout to investors, plus legal fees.
In an Aug. 31 filing opposing the bond motion, the states, led by California Attorney General Rob Bonta, argued that Paramount’s potential financial losses are of its own making.
READ: Paramount to exit California as Warner Bros. merger could face antitrust lawsuit (July 13, 2026)
The states said in their opposition that “Paramount now wishes to offload its responsibility” for agreeing to pay WBD shareholders a “ticking fee” of $7 million per day starting Oct. 1 until the deal closes.
“But whatever regret Paramount may feel for its commitments to Warner Bros., to Plaintiff States, to the WGA, and to the Court, it cannot show that the Court acted ‘improvidently’ in signing the joint stipulation. Nor can Paramount show why the public or a nonprofit labor union should underwrite its acquisition of Warner Bros.,” the state attorneys general said.
Paramount insists that the states and the WGA must “accept the financial consequences” if they lose in court. Judge Martinez-Olguin has scheduled the trial to begin March 2, 2027, and Paramount agreed to put the merger on hold until the trial concludes.
“If plaintiffs insist that this transaction is paused during the pendency of their lawsuit, they must accept the financial consequences if their challenge ultimately fails,” a Paramount spokesperson said Tuesday.
“Paramount agreed to delay closing to facilitate a prompt resolution of the case, while expressly preserving its legal rights and we continue to honor that agreement. We are not asking the district court to lift the no-close order, but to require enforcement of the bond that protects our financial interests while the litigation remains pending.”
READ: Paramount raises stakes in Warner Bros. deal, offers to pay Netflix exit fee (February 11, 2026)
Paramount struck a deal to acquire Warner Bros. Discovery following a long battle with Netflix, which also sought to take over the company.
In July, California and 11 other states filed a lawsuit in federal court in Oakland challenging Paramount’s $110 billion acquisition of Warner Bros. Discovery. The states argued that the merger would create a media giant capable of reducing competition, lowering workers’ wages and raising prices for consumers, while also harming movie theaters and basic-cable distributors.
States including New York, Minnesota, Arizona, Colorado, Massachusetts, New Jersey, Washington, New Mexico and Nevada have joined the lawsuit.