Paramount Pictures filed a motion on Monday asking U.S. District Judge Araceli Martinez‑Olguín to require the 12‑state coalition of attorneys general that sued to block the Warner Bros. Discovery merger to post a $1.9 billion bond. The company says the bond would protect it from the “ticking fees” built into the merger agreement that accrue each day the deal remains unclosed.
Why Paramount wants a bond
Under the merger contract signed last winter, Paramount must pay roughly $7 million per day in “ticking fees” to Warner Bros. shareholders after September 30, 2026, plus additional financing costs. By the time the judge rules on the bond request, Paramount estimates it will have incurred $1.3 billion in unrecoverable losses from those fees.
Paramount argues that the states and the Writers’ Guild of America, the other plaintiff, should be responsible for those costs. If the court orders a bond, the company says the bond proceeds would be used to reimburse the “ticking fees” and other expenses should Paramount ultimately prevail.
Judge’s prior stance
Judge Martinez‑Olguín previously declined to require a bond, noting that the states had demonstrated a legitimate public‑interest motive in filing the suit. She issued a temporary restraining order that halted the merger and later allowed the parties to skip a preliminary injunction hearing, moving directly toward a March antitrust trial.
Legal analysts suggest Paramount’s bond request may be a pressure tactic aimed at encouraging a pre‑trial settlement. Others see it as laying groundwork for a fast‑track appeals process if the trial does not go in the company’s favor.
State attorneys general push back
California Attorney General Rob Bonta, who leads the coalition, responded that Paramount entered the merger knowing the “ticking fee” provisions and the regulatory review that would follow. “Paramount went into this process with eyes wide open,” a spokesperson said, adding that the company is now trying to “blackmail” the states for a do‑over.
Bonta also emphasized that taxpayers would not be on the hook for costs Paramount agreed to pay under the merger terms.
What’s at stake
The Warner Bros. Discovery deal, valued at roughly $8 billion, would combine two of the nation’s largest media companies. The merger has drawn scrutiny from antitrust regulators and state officials who argue it could reduce competition and harm local media markets.
The upcoming antitrust trial in March will determine whether the merger can proceed. Regardless of the outcome, Paramount says the financial exposure from the ticking fees is significant and that a bond would safeguard the company’s interests while the legal battle continues.
Original reporting: KTVZ (Central Oregon) — read the source article.
