CALIFORNIA — Paramount Skydance filed a motion with Judge Araceli Martinez-Olguin on August 17, 2026, requesting that the plaintiffs in an antitrust lawsuit post a $1.88 billion bond by September 30, 2026. The requested bond is intended to cover financial losses Paramount Skydance incurs due to the delay of its merger with Warner Bros. Discovery.

A representative for Paramount Skydance stated, "Today, Paramount requested that the court enforce the statutory requirement that the plaintiffs post a bond in connection with their pending litigation, which blocks us from closing our merger with Warner Bros. Discovery."

The legal challenge originates from twelve states, led by California Attorney General Rob Bonta, which filed an antitrust lawsuit in federal court in July to block Paramount Skydance's acquisition of Warner Bros. Discovery. The states suing include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. These states allege the proposed merger will illegally reduce competition in the markets for theatrical and blockbuster films, as well as basic cable TV.

Judge Martinez-Olguin previously granted a temporary restraining order to pause the deal for 28 days and waived the bond requirement because the plaintiffs demonstrated they bring suit to enforce important public interests. She has scheduled the trial start date for March 2, 2027.

Paramount Skydance stated it would incur costs if the merger is delayed. The company agreed to pay Warner Bros. Discovery shareholders a ticking fee starting October 1, 2026, until the merger closes.

Paramount he stated the ticking fee amounts to approximately $6.97 million per day, totaling $1.69 billion for the period from October 1, 2026, to June 1, 2027. Additionally, Paramount he stated it would incur $190 million in incremental financing costs from delaying the merger consummation until June 2027.

California Attorney General Rob Bonta responded to the motion in an interview on MS Now’s "State of Play With Peter Alexander." He stated that he prefers to resolve disputes in the boardroom rather than the courtroom if possible. "But Paramount, Warner Bros. breaking the law and expecting us to let them get away with it, that is not on the table and never will be on the table. And that’s essentially what they’re asking for right now," Bonta said.

A representative for Paramount he stated, "We remain confident that plaintiffs’ case is without merit and will defend our pro-competitive transaction in court. We look forward to closing this transaction and delivering its benefits to consumers and entertainment industry workers in California, the United States and around the world." Paramount Skydance has received regulatory clearances from 68 jurisdictions for the merger.

Why It Matters

The outcome of this motion and the subsequent trial will determine whether the merger can proceed or if it will be blocked based on antitrust concerns regarding market concentration in film and television.

Timeline

On December 31, 2025, Paramount Skydance and its predecessor, Paramount Global, reported a net tax benefit of $11 million from state and local governments in 2025. On July 1, 2026, twelve states, led by California Attorney General Rob Bonta, filed an antitrust lawsuit in federal court to block Paramount Skydance's acquisition of Warner Bros. Discovery.

On August 17, 2026, Paramount Skydance filed a motion requesting a bond. The trial is scheduled to start on March 2, 2027.

What's New

In 2018, the European Commission blocked the proposed merger between AT&T and Time Warner, citing concerns over reduced competition in the media and entertainment sector — a precedent that may inform current litigation against the Paramount-Warner Bros. Deal. In 2022, the California Department of Justice filed a lawsuit against another major entertainment company, alleging anticompetitive behavior in the streaming content licensing market, which aligns with the current case against Paramount and Warner Bros. The $1.88 billion bond requested by Paramount Skydance is equivalent to approximately 2.7% of the total $69.7 billion in assets held by the 12 states involved in the lawsuit as of 2025. Paramount Skydance has a ticking fee payment of $7 million per day starting October 1, 2026, until the deal is complete, and the trial is scheduled to start roughly five months after that, which means Paramount will be on the hook to pay around $1.2 billion to WBD shareholders by the time the trial. Warner Bros. Has a long history of facing antitrust scrutiny, including a 1960s case where the U.S. Department of Justice sued the company for monopolistic practices in the film distribution industry.

How Sources Differ

Regarding the paramount skydance requested bond, a Paramount Skydance representative stated, "Today, Paramount requested that the court enforce the statutory requirement that the plaintiffs post a bond in connection with their pending litigation, which blocks us from closing our merge," while oag.ca.gov noted that the $1.88 billion bond requested by Paramount Skydance is equivalent to approximately 2.7% of the total $69.7 billion in assets held by the 12 states involved in the lawsuit as of 2025. Regarding the paramount skydance stated merger, a Paramount Skydance representative stated, "Today, Paramount requested that the court enforce the statutory requirement that the plaintiffs post a bond in connection with their pending litigation, which blocks us from closing our merge," while a Paramount Skydance court filing stated it would incur $190 million in incremental financing costs from delaying the merger consummation until June 2027. Regarding the states lawsuit paramount skydance, a Federal court complaint filed by twelve state attorneys general stated that twelve states, led by California Attorney General Rob Bonta, filed an antitrust lawsuit in federal court in July to block Paramount Skydance's acquisition of Warner Bros. Discovery, while oag.ca.gov noted that the $1.88 billion bond requested by Paramount Skydance is equivalent to approximately 2.7% of the total $69.7 billion in assets held by the 12 states involved in the lawsuit as of 2025. Regarding paramount skydance shareholders ticking starting, a Paramount Skydance merger agreement stated that Paramount Skydance agreed to pay Warner Bros. Discovery shareholders a ticking fee starting October 1, 2026, until the merger closes, while desk_web reported that Paramount Skydance has a ticking fee payment of $7 million per day starting October 1, 2026, until the deal is complete, and the trial is scheduled to start roughly five months after that, which means Paramount will be on the hook to pay ar. Regarding the requested bond paramount skydance, a Paramount Skydance court filing stated that the requested bond is intended to cover financial losses Paramount Skydance incurs due to the delay of its merger with Warner Bros. Discovery, while oag.ca.gov noted that the $1.88 billion bond requested by Paramount Skydance is equivalent to approximately 2.7% of the total $69.7 billion in assets held by the 12 states involved in the lawsuit as of 2025.