Paramount has asked a US court to order 12 state attorneys general and the Writers Guild of America to post a $1.88 billion bond over their lawsuit blocking its $111 billion merger with Warner Bros. Discovery.
The film studio submitted the petition this week to US District Judge Araceli Martínez-Olguín, requesting that plaintiffs be required to deposit $1,884,726,092.73 before September 30, 2026, to cover mounting financial losses caused by legal delays.
Paramount previously agreed to a court order freezing the transaction until an antitrust trial resolves the dispute. However, the company now maintains that the prolonged delay is generating quantifiable monthly costs and severe economic damage while the acquisition remains stalled.
The requested bond amount was calculated based on the estimated financial impact of delaying the transaction and the expenses incurred from ongoing litigation. Paramount intends to draw from the funds to cover its losses if it prevails in court.
While the takeover faces fierce judicial resistance in the United States, Paramount has secured key regulatory support internationally. Regulatory authorities in Europe and the United Kingdom have already granted approval for Paramount Skydance to acquire Warner Bros. Discovery.
Financial penalties and opposition
The motion has sparked a fierce backlash from the group of state prosecutors opposing the deal, led by California Attorney General Rob Bonta. Bonta's office accused Paramount of attempting to alter the court conditions it had previously accepted at the start of the judicial process.
The 12 state attorneys general and the Writers Guild of America contend that combining the two media giants for approximately $111 billion would illegally diminish competition across film and television distribution markets.
Paramount rejected those claims, arguing that the merger will benefit both consumers and industry workers. Based in Los Angeles, Paramount is a major American film studio, while Warner Bros. Discovery operates extensive entertainment, television, and streaming assets worldwide.
The company faces mounting pressure from a daily compensation penalty starting October 1, 2026. Under the terms of the deal, Paramount must pay a fee of nearly $7 million each day to Warner Bros. Discovery shareholders until the transaction officially closes.
Trial schedule set for 2027
Judge Martínez-Olguín set the antitrust trial to begin on March 2, 2027. The trial is scheduled to run for 12 business days through March 19, following a pre-trial conference on February 24.
The schedule marks a significant setback for Paramount Skydance, which had asked the court for an expedited trial start in November 2026. Opposing state prosecutors and the Writers Guild of America, a union representing screenwriters in film and television, had requested that the trial begin in April 2027.
Due to the delay, calculations published by entertainment trade publication Variety show Paramount could accumulate roughly $1.2 billion in daily compensation payments by the end of the trial.
Despite the financial strain, Paramount Chairman and Chief Executive Officer David Ellison said the company remains confident the merger will be completed. Ellison noted that Paramount is open to reaching an out-of-court settlement, but emphasized that the facts and law are on its side and expected the studio to win the lawsuit.
