Paramount Seeking a 'Do-Over' on Deal to Delay Merger
Variety • • entertainment
Key Points:
- California Attorney General’s office rejected Paramount’s request for a $1.88 billion bond, accusing the company of seeking a “do-over” on its agreement to delay the Warner Bros. merger until an antitrust trial set for March.
- The A.G.’s office emphasized that Paramount, a “sophisticated” company, knowingly accepted regulatory review and a $7 million-per-day ticking fee, and should not shift the financial burden to California.
- Paramount wants an earlier trial date and argues that if the case extends to June, it will incur $1.7 billion in ticking fees plus $190 million in financing costs, seeking a bond from the states and the Writers Guild of America to cover losses if the merger is approved.
- Judge Martinez-Olguin initially blocked the merger without requiring a bond, and the current delay agreement also does not include a bond; Paramount now seeks to amend this or dissolve the deal to proceed with the merger.
- Paramount maintains confidence that the merger poses no competitive harm and criticizes the 12-state coalition for opposing the deal despite a global consensus supporting its approval.
