Deadline has reported the WGA and the State AG’s have responded to Paramount’s request for $1.88 billion dollar bond. Paramount requested the bond to cover a $7 million-a-day ticking fee it owes to shareholders starting October 1st. The trial is set for March of 2027. Paramount also threatened to leave California if the state attorneys general, led by California AG Rob Bonta, do not settle the case before the ticking fee kicks in.
A federal judge has set the bond hearing for September 24th. Bonta and company quickly responded to what they believe is an outrageous request from David Ellison.
“Defendant Paramount Skydance seeks to extract $1.88 billion from the public and a non-profit labor union to underwrite the costs of two private contracts it entered willfully, with advice of counsel, and for its own benefit,” The states said in a tandem filing with the WGA. It also stated that Paramount is seeking to revise a “stipulation to voluntarily refrain from closing the merger, which Paramount itself proposed, negotiated, and then presented to this Court for signature,” per Deadline.
“Whatever regret Paramount may feel for its commitments to Warner Bros., to Plaintiff States, to the WGA,1 and to the Court, it cannot show that the Court acted ‘improvidently’ in signing the joint stipulation. Nor can Paramount show why the public or a non-profit labor union should underwrite its acquisition of Warner Bros,” the filing continued per Deadline.
According to Deadline, in the filing the coalition directly addresses the court and undercuts Paramount’s bond estimate: “The Court should deny Paramount’s motion and decline to modify the stipulation to require a bond. “In the alternative, if the Court grants Paramount’s motion, it should impose a nominal bond of $10,000.”
Paramount cited the Clayton Act in response to the filing: “The Clayton Act and Rule 65 are clear: plaintiffs seeking to block a transaction must post a bond to protect against the harm caused if their challenge ultimately fails,” a Paramount spokesperson told Deadline. “Plaintiffs should not get a free pass from that requirement simply by invoking the public interest given their vision of the public interest is contrary to the view of regulators around the world who have cleared this transaction. And that is why, regardless of their stated reasons for bringing this lawsuit, they are required to post a bond that accounts for the substantial and quantifiable costs inflicted by this litigation every month that goes by,” per Deadline.
The statement continued, “We are confident the evidence will demonstrate that this lawsuit is meritless and we look forward to closing the transaction and delivering its benefits to consumers and entertainment industry workers in California, across the United States, and around the world.”
Red states Iowa and Montana have thrown their support behind Paramount, filing a counter-lawsuit with the Supreme Court. There is approximately one month until the deadline for Paramount to make good on their threat to leave California. Ellison has reportedly looked into the possibility of states such as Texas, Georgia, and Tennessee. Two of California’s most prominent politicians and one failed candidate have spoken out on the merger. Governor Gavin Newsom and LA Mayor Karen Bass have called for settlement between the two parties. LA mayoral candidate and former reality television star Spencer Pratt has also called for mediation. Despite an unsuccessful run, Pratt maintains a devoted social media following and fan base. Calls for mediation have drawn scrutiny, as critics cite reports from the L.A. Board of Supervisors and the LA Department of Economic Opportunity indicating the merger could lead to significant job loss and layoffs.