(AFP) – Paramount Skydance is demanding California and other US states suing to block its merger with Warner Bros. put up $1.9 billion to cover fees the company will have to pay if the deal gets delayed, according to a lawsuit filed Monday. The audacious bid is the latest step in an increasingly high-stakes row pitting the media giant against a coalition of liberal states who say the attempt to swallow a historic studio will be bad for filmmakers and bad for moviegoers.
Paramount, which is run by David Ellison, whose ultra-wealthy family is a close ally of US President Donald Trump, launched a $110 billion bid for control of a stable of assets that includes Warner Bros. Pictures, CNN and the HBO Max streaming service. Opponents in the movie industry say the combined company would slash jobs in already-under-pressure Hollywood and reduce the number of films produced every year, while news media groups fret that CNN’s independence could be tamed.
Monday’s filing reflects the pressure on Paramount, with a $7 million-a-day “ticking fee” due to kick in for Warner Bros. shareholders if the takeover is not complete by October 1. The suit is an attempt to insulate Paramount from those costs, which it says will only accrue because of the ongoing legal action. If a judge approves the move at a hearing on Wednesday, California and the other 11 states, as well as the Writers’ Guild of America, which is also suing to block the merger, would be on the hook for the cash if their legal action fails.
Last week, Ellison threatened to move the company out of California if the state’s attorney general, Rob Bonta, did not negotiate on his lawsuit. Bonta dubbed the threat “blackmail.” The US federal government, the European Union and the British government are among those who have already given their blessing to the takeover.
© 2024 AFP
