Justice Department asks states to post $1.88 billion bond for Paramount merger holdup
The US Justice Department filed a motion Tuesday urging a federal judge to require twelve states, including California, to post a $1.88 billion bond regarding the halted Paramount and Warner Bros Discovery merger.
Government argues for financial security
The Justice Department stated that state parties challenging a merger must post a bond if an injunction is issued. The filing notes that private challengers are not treated as equals to the federal government under current antitrust laws. This requirement forces parties to have skin in the game before seeking to stop a deal.
States face potential massive costs
California Attorney General Rob Bonta previously demanded this specific sum from Paramount to cover losses if it wins the cases. The lawsuit has temporarily halted the $111 billion megamerger between the two entertainment companies. A trial regarding these issues is scheduled for March, which is past the original closing date.
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