Paramount says California AG contradicted bond arguments in TV interviews

Paramount Skydance revealed on Tuesday that California Attorney General Rob Bonta's statements in television interviews contradict his legal arguments against the company's request for a $1.88 billion bond in the Warner Bros. Discovery merger case. The media giant is seeking the bond to protect itself from the financial repercussions of delaying its bid to become a formidable competitor to Netflix and Disney.

Paramount has emphasized that a bond is crucial for the company to recoup losses if it prevails in cases filed by a California-led coalition of states and the Writers Guild of America.

One of Bonta's legal objections to the bond is that Paramount willingly chose to postpone the merger's closing rather than await a judge's order to halt the transaction. However, Paramount claims that Bonta has stated in television interviews that the pause is tantamount to an injunction, thus supporting the states' request for a bond under antitrust law. The Attorney General's office has yet to provide a comment on the matter.

A hearing to address Paramount's bond request is scheduled for September 24 at U.S. District Judge Araceli Martinez-Olguin in Oakland. California, along with 11 other states, filed a lawsuit in July to obstruct the deal, arguing that it would establish a dominant media entity capable of inflating prices in the film and television industries.

The Writers Guild of America has also joined the lawsuit, contending that the merger would undermine the working conditions and pay of writers. Paramount maintains that the merger will bolster the film and television sectors, resulting in an increase in content rather than a decrease. Despite both parties expressing openness to negotiations, Bonta has insisted that the states will proceed to trial if a potential settlement fails to address their concerns.