Paramount demands $1.88 billion bond to offset merger delay costs

The studio argues that the legal opposition, which pushed the acquisition timeline as far as June 2027, imposes an unsustainable financial burden. Under the terms of the merger, Paramount is obligated to pay WBD shareholders a ticking fee of 25 cents per share every quarter starting September 30. Executives estimate these unrecoverable costs will reach $1.3 billion by the time the court reaches a verdict.

While the deal has already cleared the U.S. Department of Justice and other global regulatory hurdles, the state-level antitrust challenge effectively stalls the transition. Paramount claims that without a bond to secure these potential losses, a courtroom victory would be hollow. The filing emphasizes that the ongoing delay risks the expiration of existing regulatory approvals and threatens the company with a massive $7 billion breakup fee should the acquisition ultimately collapse under the weight of these proceedings.