Paramount Uses California AG's Statements in Bond Dispute with Warner Bros.
On September 8, 2026, Paramount Skydance Corporation (NASDAQ:PSKY) argued that statements made by California Attorney General Rob Bonta contradict his legal stance on a $1.88 billion bond request related to the ongoing court battle over its proposed acquisition of Warner Bros. Discovery Inc. (NASDAQ:WBD). The states claim the bond is unnecessary since Paramount voluntarily paused the deal rather than waiting for an injunction, but Paramount asserts that this pause functions like one under antitrust law and thus requires a bond. A hearing on the matter has been scheduled for September 24. If granted, the bond could help mitigate financial losses from delays in closing the $110 billion acquisition by allowing Paramount to potentially recover up to $1.3 billion in ticking fees paid to WBD shareholders if it wins the case. However, even with a favorable ruling on the bond, the broader antitrust lawsuit remains unresolved and poses risks that could still block the deal. Warner Bros. Discovery benefits from these delays through daily payments of about $7 million starting October 1, which accumulate toward potential compensation for shareholders if the transaction does not close by April 2027. The uncertainty complicates strategic planning at WBD as it continues to operate independently during litigation.
