David Ellison and his billionaire father may need to get their checkbooks ready.
Paramount Skydance is expected to need to pay Warner Bros. Discovery shareholders more than $1 billion in so-called ticking fees after a federal judge set the date for the trial about its merger: It’s March 2.
The Ellisons’ and Paramount’s other financial backers agreed to pay WBD investors $650 million per quarter, which is about $7 million per day, that its merger isn’t finalized, starting after September 30.
There are 169 days between October 1 and March 19, which is when Paramount’s trial is scheduled to end.
That implies Paramount would owe WBD shareholders about $1.18 billion, unless the company reaches a settlement with the 12 states suing to block its deal.
If Paramount doesn’t complete its merger with WBD, it would owe WBD a $7 billion termination fee under the agreement.
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