Paramount Skydance seeks $1.88B bond from 12 states amid merger
Paramount Skydance Corp. is asking 12 US states for a $1.88 billion bond as those states try to block its huge merger with Warner Bros. Discovery.
Paramount says the money would cover losses if the deal gets delayed and they end up losing in court.
The merger, worth $110 billion, already has approval from the US Department of Justice and regulators in 68 jurisdictions around the world.
Judge says states protecting public interest
The bond request is based on possible "ticking fees" of $650 million per quarter if it doesn't close before October 1, plus other costs.
Paramount argues federal law says the states should post a bond, but a judge turned down their last request, saying the states are just doing their job to protect public interests.
The states, led by California's Attorney General, are worried about job cuts and less content for viewers if the merger goes through, with a trial set for March.