Paramount is asking a federal court to require a $1.88 billion bond from 12 Democratic state attorneys general and the Writers Guild of America as they seek to block a proposed merger between Warner Bros. and Paramount.
The bond request surfaced after the coalition, led by California Attorney General Rob Bonta, filed an antitrust lawsuit. The group includes attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington, according to reporting by The Center Square.
Paramount’s position: cover the cost of delay
In reply briefs filed Tuesday, a Paramount press release said the company asked the district court to enforce a bond requirement in connection with the lawsuit to block “Paramount’s merger with Warner Bros. Discovery, Inc.” The release called the lawsuits the “only remaining barrier to closing this transaction.”
“If plaintiffs insist that this transaction is paused during the pendency of their lawsuit, they must accept the financial consequences if their challenge ultimately fails,” a Paramount spokesman said in a statement quoted by The Center Square. The spokesman added: “The Clayton Act and Rule 65 provide for a bond precisely to protect against exactly those types of losses if a court determines an injunction ultimately is unwarranted.”
Bonta and allies: merger would reduce competition
When reached by The Center Square, Bonta’s office said, “Our office believes Paramount’s motion has no merit, and we look forward to presenting our case in court at the September 24th hearing.”
Bonta’s office also said the “proposed Warner Bros./Paramount merger would combine two Hollywood titans and extinguish competition between them,” contending it “is illegal under long-standing federal antitrust law, would create a troubling level of concentration in three markets, and will mean less competition, higher costs for consumers, lower wages, job cuts, and fewer movies and TV shows.”
Outside commentary and political crosscurrents
Ashley Baker, executive director of the Committee for Justice, criticized the lawsuit in comments to The Center Square. Baker argued that “forcing taxpayers to foot the bill for a $1.88 billion bond request for a politically-motivated lawsuit is irresponsible, even for a radical attorney general like Rob Bonta.”
Baker also asserted to The Center Square that “the merger was already cleared by the Department of Justice,” and claimed “Bonta’s political allies like Gavin Newsom, Karen Bass, and Xavier Becerra oppose what he’s doing.” She further said that “Democrat elected officials from New Jersey joined the opposition to Bonta’s lawsuit and expressed concerns that their constituents could be responsible for covering the $7 million per day tab.”
Patriot Nation Press has not independently verified Baker’s claims.
What’s next
A hearing is scheduled for Sept. 24, according to Bonta’s office. The court has not ruled on Paramount’s bond request.
