Paramount Skydance has requested that California and other US states, which are suing to block its $110 billion merger with Warner Bros., post a $1.9 billion bond to cover fees if the deal is delayed, according to a lawsuit filed Monday. The merger is set to close by September 30, with a daily fee of $7 million payable by Paramount if the deadline is missed, per livemint.com.
The lawsuit highlights that the trial over the states' legal challenge is scheduled for March, with final legal briefs expected in April. Paramount warned that by the time the trial concludes, it will have paid Warner Bros. shareholders an undisclosed sum in fees. The bond is intended to cover these potential costs if the merger is delayed due to the ongoing litigation, according to livemint.com.
This request underscores the high stakes involved in one of the largest media mergers in recent history. The $110 billion deal between Paramount Skydance and Warner Bros. has faced significant regulatory scrutiny, with state governments challenging the merger on antitrust grounds. The daily fee and bond demand reflect the financial risks Paramount faces amid the protracted legal battle, as reported by livemint.com.
The trial is scheduled to begin in March, with the legal process expected to extend into April. Paramount's demand for the $1.9 billion bond aims to mitigate financial exposure during this period, ensuring coverage of fees related to the merger delay, according to livemint.com.