Paramount seeks $1.9bn bond in legal battle over Warner Bros merger

Paramount Skydance has asked a California court to require a coalition of U.S. states challenging its proposed merger with Warner Bros. to post a $1.9 billion surety bond, arguing it could face huge financial losses if the takeover is delayed by the ongoing litigation.

The request, filed on Monday, August 17, 2026, marks the latest development in a legal dispute between the media company and 12 states led by California, alongside the Writers Guild of America, who are seeking to block the proposed merger.

Paramount, led by Chief Executive David Ellison, is pursuing a $110 billion acquisition of Warner Bros., whose assets include Warner Bros. Pictures, CNN, and the HBO Max streaming platform.

The states opposing the deal argue that the merger would harm competition in the entertainment industry, leading to job losses in Hollywood, fewer films being produced and reduced opportunities for filmmakers.

Media advocates have also raised concerns that CNN’s editorial independence could be affected under the new ownership.

In its latest court filing, Paramount said the legal challenge could trigger substantial financial penalties.

The company noted that a $7 million daily fee payable to Warner Bros. shareholders will begin accruing if the merger is not completed by October 1.

The company argued that the requested surety bond would protect it from those potential losses should the lawsuit ultimately fail.

Stock market opens week bearish as investors lose N107bn

If the court grants the application at a hearing scheduled for Wednesday, California, the other participating states and the Writers Guild of America could be held financially responsible for the costs if they do not succeed in blocking the transaction.

The legal battle has intensified in recent weeks. Last week, Ellison warned that Paramount could relocate its operations from California unless the state’s Attorney General, Rob Bonta, entered negotiations over the lawsuit. Bonta dismissed the warning as “blackmail.”

Despite the legal opposition, the proposed takeover has already secured regulatory approval from the United States federal government, the European Union and the United Kingdom.

The outcome of the court proceedings could determine whether the multibillion-dollar media merger proceeds on schedule or faces further delays.