California lawsuit keeps Paramount Skydance’s Warner Bros. bid in limbo
Paramount Skydance has reportedly won regulatory approval in 68 jurisdictions, but a lawsuit led by California remains unresolved and could trigger a US$650 million quarterly fee.
Paramount Skydance’s reported US$110 billion bid for Warner Bros. Discovery remains blocked by a lawsuit brought by 12 US state attorneys general, despite regulatory approval in 68 jurisdictions, according to reporting cited by Yahoo Finance.
California Attorney General Rob Bonta, who leads the states’ legal challenge, cancelled a planned settlement meeting with Paramount Skydance chief executive David Ellison, citing a “lack of good faith”. The status and terms of any further negotiations remain unresolved.
Paramount has reportedly acknowledged that it is considering structural changes as part of possible settlement discussions. It has also reportedly asked a court to require the states to post a US$1.88 billion bond.
The unresolved litigation is increasing the financial pressure on the transaction. Paramount could face a reported quarterly ticking fee of about US$650 million from 30 September if the deal remains incomplete.
The reported approvals leave the state lawsuit as the main remaining obstacle identified in the supplied material, but they do not establish that the acquisition will proceed. The companies and the states remain in legal and negotiating limbo.
