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Paramount Seeks $1.9B Bond From States, Writers

Wall Street Journal US Business •
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Paramount has asked a judge to require 12 states and the Writers Guild of America to post a nearly $1.88 billion bond if they continue challenging its acquisition of Warner Bros. Discovery.

The motion argues that plaintiffs should be held financially responsible for damages if Paramount ultimately prevails in the lawsuit seeking to block the $81 billion deal.

Paramount specifically wants the bond to cover the roughly $7 million-a-day, or $650 million-a-quarter, ticking fee it will owe Warner shareholders if the deal hasn’t closed by Oct. 1.

The ticking fee was originally included as an incentive to persuade Warner shareholders to support Paramount’s bid over rival suitor Netflix.