Paramount Skydance Corp. (NASDAQ:PSKY) has asked a federal judge to require California Attorney General Rob Bonta and 11 other state attorneys general challenging its Warner Bros. Discovery (NASDAQ:WBD) deal to post a $1.88 billion bond.

The court document filed on Monday has called upon the plaintiffs, including New York, Colorado, Oregon, and Nevada, as well as the Writers Guild of America (WGA), to post a bond that would offset some of Paramount’s expenses, including “ticking fees” promised to Warner shareholders if the deal extends beyond its expected September closure, reported the Los Angeles Times.

The states are not obligated to pay the full $1.88 billion upfront but must produce a portion of the amount by September 30. If the Democratic state attorneys general and WGA lose their lawsuits, they would have to pay the full amount.

Paramount, in a filing signed by former federal prosecutor Danielle Sassoon, sought to pressure the states and asked the judge to require the WGA to post a bond to cover some costs, citing the Clayton Antitrust Act.

Paramount Faces Mounting Deal Pressure

Monday’s court filing underscores the financial strain Paramount faces from the deal delay. This includes up to $1.3 billion in ticking fees if its Warner acquisition trial drags on, with a decision potentially coming after some regulatory approvals expire. The deal must close by Oct. 1, or Warner Bros. Discovery could seek a $7 billion breakup fee.

Meanwhile, Bonta’s office accused Paramount of trying to pressure it into backing down.

Earlier this month, Paramount Skydance CEO David Ellison defended the company’s proposed Warner Bros. Discovery deal, arguing that antitrust lawsuits are less about competition and more about whether he can be trusted to oversee CNN. He pledged to keep the network’s journalism independent and fact-based, saying his mixed political views would not influence newsroom coverage.

Final Merger Hurdle

The proposed $110 billion acquisition of Warner Bros. Discovery by Paramount has been facing growing opposition. In July, the Screen Actors Guild-American Federation of Television and Radio Artists, or SAG-AFTRA, backed the multistate legal effort to block the deal.

On Friday, Paramount said it secured Mexico’s approval for its Warner Bros. merger, leaving 12 state attorneys general opposing the deal. With regulatory clearance from 68 countries, CEO David Ellison urged the states to settle rather than take the case to trial.

PSKY Price Action: On a year-to-date basis, the stock declined 22.00%, as per Benzinga Pro. On Monday, PSKY ended 1.38% higher at $10.28.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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