David Ellison's Paramount beats earnings estimates — but may owe WBD shareholders more than $1 billion
Paramount Skydance's financial backers may soon owe billions of dollars to WBD shareholders after a judge ruled that its trial will start next March.
Paramount Skydance CEO David Ellison's company reported better-than-expected revenue and earnings in its latest quarter, but could face a significant payout to Warner Bros. Discovery shareholders. A federal judge set March 2 for the trial regarding Paramount's proposed merger with WBD, and if the deal isn't completed, the media mogul and his father may owe WBD investors over $1 billion.
Paramount agreed to pay $7 million per day that the merger deal isn't finalized, starting September 30. There are 169 days between October 1 and March 19, when the trial is scheduled to conclude, potentially resulting in a payout of approximately $1.18 billion to WBD shareholders.
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