Paramount demands US$1.9bil surety over states’ merger lawsuit
The demand reflects the pressure on Paramount, with a US$7 million-a-day “ticking fee” set to kick in for Warner Bros shareholders if the takeover is not completed by Oct 1.
Paramount Skydance, the company led by David Ellison, has demanded a US$1.9 billion surety from California and other US states involved in a lawsuit to block their merger with Warner Bros. This demand comes as part of a US$110 billion bid for control of assets including Warner Bros Pictures, CNN, and HBO Max, reported on Monday.
The lawsuit argues that the merged company would negatively impact filmmakers and moviegoers by reducing jobs and the number of films produced annually. If the merger is not completed by October 1, Warner Bros shareholders would incur a daily fee of US$7 million. The suit aims to prevent Paramount from bearing the financial burden of the legal proceedings, which supporters claim will only occur due to ongoing litigation.
If a judge approves the request at a hearing on Wednesday, the 12 parties involved would be responsible for the cost if their legal action is unsuccessful. Previously, Ellison had threatened to relocate the company outside California if the state's attorney general, Rob Bonta, did not engage in negotiations regarding the lawsuit.
Various governments, including the US federal government, the European Union, and the British government, have already approved the takeover.
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- Paramount demands US$1.9bil surety over states’ merger lawsuit freemalaysiatoday.com
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