Key facts
- The U.S. Justice Department urged a federal court to require states seeking to block Paramount and Skydance's $110 billion takeover of Warner Bros. Discovery to post a bond.
- A coalition of 12 states, led by California, seeks to block the transaction, arguing it would create a media behemoth with the power to raise prices.
- Paramount asked a U.S. judge to require the states to post a $1.88 billion bond.
- Paramount must pay a fee of $7 million a day if the acquisition does not close by September 30.
- Paramount said it would have paid Warner Bros. shareholders $1.3 billion in unrecoverable "ticking fees" by April.
The U.S. Justice Department on Tuesday urged a federal court to require states seeking to block Paramount and Skydance's $110 billion takeover of Warner Bros. Discovery to post a bond covering the costs of any delay in completing the deal. The department stated in a filing that private plaintiffs seeking a preliminary injunction under federal antitrust law must post a bond to cover potential damages if the order is later overturned.
A coalition of 12 states, led by California, is seeking to block the transaction, arguing that the deal would create a media behemoth with the power to raise prices in film and television. The Writers Guild of America has also sued to challenge the deal.
Last month, Paramount asked a U.S. judge to require the states to post a $1.88 billion bond. The company stated that it must pay a fee of $7 million a day if the acquisition does not close by September 30. Paramount anticipates that by April, when a ruling is expected, it would have paid Warner Bros. shareholders $1.3 billion in unrecoverable "ticking fees."