Paramount wants a $1.9 billion bond from state AGs fighting the Warner Bros. merger

Live updates

1. 28d ago

   Paramount seeks billion-dollar bond from states blocking Warner Bros. merger

   Paramount is demanding a bond of approximately $1.9 billion from state attorneys general and the WGA to cover costs associated with an antitrust lawsuit delaying its merger with Warner Bros. Discovery. The California Attorney General has already rejected the request, characterizing the move as an attempt by the company to get a "do-over" on the merger delay. David Ellison has suggested a potential exit from Hollywood and a move out of California as states continue to challenge the deal.

   Why it matters

   The merger faces significant regulatory hurdles from state-level antitrust litigation. This legal roadblock has prompted Paramount to seek financial safeguards against further delays. The tension has escalated into a dispute over whether the states should shoulder the financial burden of the stalled transaction.

   What is confirmed

   • Paramount is seeking a bond of either $1.88 billion or $1.9 billion from state attorneys general to cover costs of the Warner Bros. merger delay.
   • The California Attorney General rejected the bond request and stated the company wants a "do-over" on the merger delay.
   • David Ellison has suggested moving Paramount out of California or exiting Hollywood due to state threats to the Warner Bros. deal.

   Still unconfirmed

   • Prediction market traders estimate a 1-in-4 chance that the Paramount bid for Warner Bros. Discovery will fail.

   What to watch next

   • Court rulings on the antitrust lawsuit
   • Further responses from other state attorneys general regarding the bond demand
   • Formal announcements regarding Paramount's headquarters location
   Sources used for this update (11)

   1. CNBC — Paramount seeks $1.88 billion bond from state AGs to cover costs of WBD merger delay
   2. nytimes.com — Paramount Asks States to Shoulder Costs of Delaying Warner Bros. Deal
   3. Deadline — Paramount Demands Huge Bond From AGs & WGA Over Costs Of “Roadblock” Antitrust Suit On WBD Merger
   4. Variety — Noah Wyle on David Ellison's Threat to Move Paramount From California
   5. nytimes.com — David Ellison Floats Hollywood Exit as States Threaten His Warner Bros. Deal
   6. Variety — California A.G. Rejects $1.88 Billion Paramount Bond, Says Company Wants a ‘Do-Over’ on Merger Delay
   7. CNN — Paramount wants a $1.9 billion bond from state AGs fighting the Warner Bros. merger
   8. The Seattle Times — Paramount demands $1.9 billion from states, including WA, over Warner deal delays
   9. puck.news — David Ellison Has Gamed Out His California Exit
   10. qz.com — Paramount seeks $1.88 billion bond in Warner Bros. merger antitrust case
   11. CNBC — Prediction market traders see roughly 1-in-4 odds Paramount’s bid to buy Warner Bros. Discovery fails
   confidence 95%