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Paramount Demands $1.9 Billion Security from U.S. States Opposing Warner Bros. Buyout
🇨🇭 Switzerland /Economy & Trade

Paramount Demands $1.9 Billion Security from U.S. States Opposing Warner Bros. Buyout

From Le Temps · () French

Translated from French, summarized and contextualized by DistantNews.

At a glance

News Named sources In the courts
  • Paramount Studios is demanding nearly $1.9 billion from U.S. states opposing its competitor Warner Bros.'s acquisition.
  • The studios argue the legal challenge to the merger imposes substantial costs and want the funds by Sept. 30, 2026, to be recouped if Paramount wins its March trial.
  • The proposed merger faces opposition from 12 Democratic states and the Writers Guild of America, who fear massive job losses in the film industry.

Paramount Studios is escalating its fight against states opposing the acquisition of Warner Bros., demanding a colossal $1.88 billion in security. The film giant argues that the ongoing legal battle to block the merger imposes significant financial burdens on the company.

Paramount wants the funds from California and eleven other Democratic states by September 30, 2026. The studio plans to recover this amount if it prevails in its lawsuit, scheduled for March. This move comes as David Ellison's group is set to acquire Warner Bros. for $111 billion, a deal that has drawn criticism from across Hollywood due to fears of widespread job cuts.

The merger is currently challenged in court by twelve Democratic states and the Writers Guild of America. The suspension of the deal poses a major problem for David Ellison, who is committed to paying Warner Bros. shareholders $7 million daily if the transaction isn't completed by the end of September. If no compromise is reached, Paramount has threatened to leave California after October 1, with potential new headquarters in Georgia, Texas, or Tennessee.

California's Attorney General previously denounced the threat as blackmail. Beyond the film industry, the broader media landscape is concerned about this merger. If successful, the Ellison family, which owns Paramount Skydance and is reportedly close to former President Donald Trump, would control two major news channels (CBS News and CNN), two major film studios (Paramount Pictures and Warner Bros.), and two streaming platforms (Paramount+ and HBO Max).

The suspension of the acquisition until the trial imposes substantial costs on Paramount.

— Paramount StudiosIn legal documents filed Monday, explaining the demand for security from opposing states.
DistantNews Editorial

Originally published by Le Temps in French. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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