Paramount demands US$1.9 billion surety over states' merger lawsuit
LOS ANGELES: Paramount Skydance is demanding California and other US states suing to block its merger with Warner Bros. put up US$1.9 billion to cover fees the company will have to pay if the deal gets delayed, according to a lawsuit filed Monday.
Paramount Skydance is demanding California and other US states pay US$1.9 billion to cover potential costs associated with their merger lawsuit against Warner Bros., according to a lawsuit filed on Monday. The lawsuit, filed by a coalition of liberal states, claims the merger will be detrimental to filmmakers and moviegoers. Paramount, led by David Ellison, is attempting to acquire control of Warner Bros.
Pictures, CNN, and the HBO Max streaming service through a US$110 billion bid. The lawsuit comes as Warner Bros. shareholders face a US$7 million-a-day fee if the takeover isn't completed by October 1. The lawsuit aims to shield Paramount from the financial burden of the ongoing legal action, which opponents argue will lead to job losses and a decrease in film production.
If a judge approves the lawsuit on Wednesday, the states and the Writers Guild of America, who are also suing to block the merger, would be responsible for the US$1.9 billion if their legal action fails. David Ellison has previously threatened to relocate the company outside California if the state's attorney general, Rob Bonta, does not negotiate with him.
The US federal government, the European Union, and the British government have already approved the takeover.
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