Paramount Skydance Seeks Settlement with 12 States Over Merger, Demands $1.9 Billion Bond
On August 17, 2026, Paramount Skydance Corporation (NASDAQ:PSKY) announced it is seeking a settlement with 12 states opposing its $110 billion merger with Warner Bros Discovery Inc. (NASDAQ:WBD). The company also requested the states post a bond of approximately $1.88 billion to cover potential losses from further delays in closing the deal. The merger has already received regulatory approval in 68 countries and clearance from the U.S. Justice Department, but remains blocked by state attorneys general led by California’s Rob Bonta. Paramount argues that continued legal action is causing financial harm without benefitting local constituents. The company faces ticking fees of about $650 million per quarter to WBD shareholders if the deal isn't finalized before September 30. Paramount CEO David Ellison expressed confidence in their case, while acknowledging the need for concessions. A federal judge previously denied a bond requirement from states but temporarily blocked the merger earlier this year.
Topics: corporate_finance legal_dispute M&A