Key facts
- Paramount Global is seeking a $1.88 billion bond related to its proposed merger with Warner Bros. Discovery.
- California Attorney General Rob Bonta is among those seeking to block the deal.
- Paramount argues Bonta's public statements in television interviews contradict his legal arguments against the bond.
- The bond is intended to cover potential losses for Paramount if the merger is blocked and Paramount later wins its legal challenges.
- A hearing on Paramount's bond request is scheduled for September 24.
Paramount Global stated on Tuesday that California Attorney General Rob Bonta's public statements in television interviews undermine his legal arguments against the company's request for a $1.88 billion bond. Paramount is seeking this bond to insulate itself from potential financial losses should it win its legal battles to proceed with the merger with Warner Bros. Discovery.
California, along with 11 other states, sued in July to block the merger, arguing it would create a media giant with excessive market power. The Writers Guild of America has also filed a lawsuit, expressing concerns about the deal's impact on writers' working conditions and pay. Paramount, however, contends the merger will strengthen the industry and lead to increased content production.
One of Bonta's arguments against the bond is that Paramount voluntarily agreed to pause the deal's closing rather than await a judicial injunction. Paramount highlighted that Bonta has described this voluntary pause as equivalent to an injunction in television interviews, which Paramount argues contradicts his legal stance and violates antitrust law requirements for states to post bonds.
U.S. District Judge Araceli Martinez-Olguin has scheduled a hearing for September 24 to address Paramount's bond request. Both Paramount and Bonta have indicated a willingness to negotiate a settlement, though Bonta stated the states are prepared for trial if their concerns are not adequately addressed.