Paramount Skydance has filed a motion in an antitrust case to compel states that are delaying its $110 billion merger with Warner Bros. Discovery to pay for associated fees and costs. The company is seeking a bond of $1.88 billion from the states involved in the lawsuit, which was initiated by a coalition of state attorneys general led by California's Rob Bonta.
Although Paramount has received necessary regulatory approvals, it agreed to postpone the merger until at least June 2027, incurring substantial costs due to a 'ticking fee' arrangement that requires it to pay Warner Bros. shareholders an additional 25 cents per share each quarter until the deal closes.
This could result in approximately $650 million in cash value per quarter, totaling around $1.3 billion by the time the trial concludes. Paramount has warned that the delay could jeopardize the regulatory approvals already secured and, if the merger fails, it would face a $7 billion breakup fee. The situation remains fluid, and further developments are expected