Sept 15 (Reuters) – The U.S. Justice Department on Tuesday urged a federal court to require states seeking to block Paramount Skydance’s $110 billion takeover of Warner Bros Discovery to post a “proper bond” covering the costs of any delay in completing the deal.
The Justice Department said in a filing with a federal court in California that states and other private plaintiffs seeking a preliminary injunction under federal antitrust law must post a bond to cover potential damages if the order is later overturned.
The filing comes as a coalition of 12 states, led by California, seeks 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 must pay a fee of $7 million a day if the acquisition does not close by September 30.
Paramount said the trial is set for March and, by the time a ruling is reached and final briefs are filed in April, it would have paid Warner Bros. shareholders $1.3 billion in unrecoverable “ticking fees.”
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid)
Comments