Paramount seeks $1.88 billion bond from state AGs to cover costs of WBD merger delay
Paramount agreed to delay its proposed acquisition of WBD to as late as June 2027 while the state AGs' case heads to trial.
Paramount has asked for a $1.88 billion bond to help cover the potential costs and financial penalties connected to the ongoing legal dispute surrounding its $110 billion merger with Warner Bros. Discovery. The bond amount, reflecting the maximum possible ticking fee and financing charges, would be utilized to compensate for damages resulting from the deal's postponement.
The merger requires a 25 cent per share ticking fee to be paid to WBD shareholders, beginning on October 1, equating to around $650 million per quarter until the merger's completion. The merger closing date is set for June 4, 2027, but the trial, slated for March 2-19, 2027, could influence the final timeline. Paramount anticipates paying at least $1.3 billion in ticking fees by trial's conclusion, and the delay may render the regulatory clearances obtained thus far void.
Paramount's spokesperson emphasized that the company has met all closing prerequisites and that the lawsuits are the sole obstacle to concluding the transaction.
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