Paramount is asking a federal court to require a $1.88 billion bond from a coalition of state attorneys general and the Writers Guild of America if their lawsuit delays a proposed merger between Warner Bros. and Paramount, according to reporting by Tate Rosentreter of The Center Square.
The lawsuit and who’s behind it
The Center Square reported that California Attorney General Rob Bonta is leading 12 Democratic attorneys general—from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington—along with the Writers Guild of America, in a lawsuit citing antitrust concerns about a Warner–Paramount tie-up.
Bonta’s office told The Center Square that it believes “the proposed Warner Bros./Paramount merger would combine two Hollywood titans and extinguish competition between them.” The office said it believes “this merger 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.”
Paramount’s $1.88B bond push
Paramount filed reply briefs “in support of its request that the State Attorneys General and the Writers Guild of America post a bond in connection with their lawsuit to block Paramount’s merger with Warner Bros. Discovery, Inc.,” The Center Square reported, citing a company press release. The release said the lawsuits are the “only remaining barrier to closing this transaction.”
In a statement quoted by The Center Square, a Paramount spokesman said: “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.” The spokesman added: “But for these lawsuits, the transaction is now otherwise ready to close, and the resulting costs of delay are substantial and quantifiable.” He cited the Clayton Act and Rule 65 as providing “for a bond precisely to protect against exactly those types of losses if a court determines an injunction ultimately is unwarranted.”
The spokesman also stated: “We are confident that the evidence will show that these lawsuits are meritless and look forward to closing the transaction and delivering its benefits in California, across the United States, and around the world.”
Bonta’s response and timing
Bonta’s media office told The Center Square: “Our office believes Paramount’s motion has no merit, and we look forward to presenting our case in court at the September 24th hearing.”
Critics weigh in
Ashley Baker, executive director of the Committee for Justice, criticized the AGs’ suit in comments to The Center Square. Baker said “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.” She also told The Center Square that “the merger was already cleared by the Department of Justice,” and claimed that Bonta’s “political allies like Gavin Newsom, Karen Bass, and Xavier Becerra oppose what he’s doing.”
Baker further asserted that “Democrat elected officials from New Jersey” had joined opposition to Bonta’s lawsuit, voicing concern that “their constituents could be responsible for covering the $7 million per day tab.”
