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Trump's DOJ Backs Ellison & Paramount In Antitrust Battle With States
Deadline • • business
Key Points:
- The Department of Justice (DOJ) under Donald Trump has sided with David Ellison's Paramount in the $1.88 billion bond dispute with a dozen states over Paramount's $111 billion merger with Warner Bros Discovery (WBD), challenging the states' antitrust objections.
- The DOJ argues that the bond is necessary to protect Paramount from damages if an injunction is wrongly granted, emphasizing the significant financial risks Paramount faces, including a $7 million daily fee starting October 1 and potential relocation of its corporate headquarters from California.
- The states' attorneys general have countered that any bond should be minimal, around $10,000, while Paramount insists on the full bond amount to cover potential losses before the trial scheduled for March 2027.
- The DOJ's position closely aligns with Paramount's filings, reflecting the close ties between the Ellison family and the Trump administration, and challenges the states' jurisdiction over the antitrust case.
- Key upcoming dates include a September 24 hearing on the bond issue, renewed settlement talks in late October, and the trial set for March 2, 2027, with the possibility of Supreme Court involvement looming.
