LOS ANGELES, California, September 1, 2026 — California and 11 other states asked a federal judge Monday to deny Paramount Skydance’s $1.88 billion bond request. The Writers Guild of America stood alongside the states’ request. Paramount is seeking a bond to cover delay costs associated with its $110 billion attempt to acquire Warner Bros. Discovery.
The States’ Argument
California said that Paramount’s costs of delay result from its own culpable actions, and the public shouldn’t be forced to bear those costs. In a court filing, California Attorney General Rob Bonta wrote: “Paramount is now trying to put its obligation on others.” Bonta said the court should reject any attempt to shift that cost onto the states or the union.
Paramount explicitly made an offer to Warner Bros. of $7 million a day, the states noted. That fee was meant to entice Warner Bros. to abandon an earlier deal with Netflix.
Paramount’s Response
States “should not receive a free pass” from standard bond requirements, Paramount said: “Plaintiffs can’t have it both ways.” The company argues that bonds exist specifically to protect against cases where a legal challenge eventually fails.
Paramount has stated that the fee will amount to about $1.3 billion in non-recoverable payments by the time the trial concludes. Regulators in at least 68 countries have already cleared the merger, according to the company, which deemed the underlying antitrust lawsuit “meritless.”
The Underlying Merger Fight
California and the other states argue that the merged entity would control film and television pricing. A federal court in Oakland blocked the $110 billion deal, citing antitrust concerns. The Writers Guild has brought a separate legal challenge over similar competition issues.
The legal battle threatens CEO David Ellison’s vision to create a major competitor to Netflix and Disney. Paramount stated it will postpone closing until the states’ case resolves, or June 2027 at the latest. That self-inflicted delay is at the heart of the current battle over who will pay its cost.
What Comes Next
Final briefs in the states’ antitrust case are due by April, setting the stage for trial. A ruling on the bond application could come before the trial begins. Entertainment industry analysts suggest the outcome could set a precedent for future Hollywood merger negotiations, with both sides signaling a willingness to continue the high-stakes legal fight rather than settle.
