Paramount Trying To Pull Fast One With Bond Request In Trial, AGs Say

Key Points:

• Paramount has requested a $1.88 billion bond from California, New York, and other states challenging its $111 billion merger with Warner Bros Discovery to cover "extraordinary losses" from the ongoing antitrust case and trial.
• The states' attorneys general and the Writers Guild of America oppose the bond request, arguing it would unfairly require public funds and a labor union to cover costs from a private business decision, recommending the court deny the motion or impose a nominal $10,000 bond instead.
• Paramount insists that under the Clayton Act and Rule 65, plaintiffs blocking a transaction must post a bond to protect against potential harm if their challenge fails, asserting the lawsuit is meritless and expressing confidence in closing the merger.
• The September 24 hearing will address the bond motion, while a separate Supreme Court consideration by red state attorneys general on antitrust enforcement remains pending, amid rumors that Paramount may relocate from California if settlement talks do not progress by October 1.