Paramount is asking a federal judge to make 12 states and the WGA cover costs from its delayed Warner Bros. Discovery merger. The company is seeking a $1.88 billion bond if the plaintiffs ultimately lose the antitrust case.
Paramount filed the request Monday with Judge Araceli Martinez-Olguin. The proposed bond would cover financial damage caused by keeping the $111 billion deal on hold during the legal fight.
“Paramount hereby moves this Court for an order modifying the Stipulation and Order Not to Close, Dkt.170, to require dissolution of that order unless Plaintiffs post a $1,884,726,092.73 bond by September 30, 2026,” the company said in its motion.
The company also argued that the court order blocking the deal “inflicts substantial costs on Paramount, which is otherwise poised to consummate the merger.”
Sharing a statement to Variety, a Paramount representative said, “Today, Paramount requested that the court enforce the statutory requirement that the plaintiffs post a bond in connection with their pending litigation, which blocks us from closing our merger with Warner Bros. Discovery.”
Why Paramount says the merger delay is costing more than financing fees
Paramount says the biggest expense comes from a “ticking fee” owed to Warner Bros. Discovery shareholders. The payment is about $6.97 million each day beginning October 1, 2026.
Based on the current schedule, that fee could reach about $1.69 billion by June 1, 2027. Paramount also estimates another $190 million in additional financing costs from the delay.
The company says those payments are only part of the financial impact. The delayed closing also prevents the combined business from starting planned investments in content, production, and creative talent.
Paramount and Warner Bros. Discovery face antitrust lawsuits from 12 states and the Writers Guild of America. The plaintiffs argue that the merger would reduce competition in entertainment markets and leave writers with fewer potential buyers.
The lawsuits are now the main obstacles preventing the merger from closing. Paramount says the deal has already received regulatory clearance from 68 jurisdictions. California Attorney General Rob Bonta has said the states remain focused on winning at trial. The trial is currently scheduled to begin March 2, 2027.
Paramount said it remains confident in the deal and plans to defend it in court. A company spokesperson said, “We remain confident that plaintiffs’ case is without merit and will defend our pro-competitive transaction in court.”
The requested bond would cover both merger costs and other losses caused by the delay, including the daily ticking fee and postponed content investments.
