Justice Department Sides With Paramount on Demand That States Post $1.88 Billion Bond
The government stressed that it concluded in its investigation that the merger won't undermine competition.
The Department of Justice has formally allied itself with Paramount's argument that states must pay a $1.88 billion bond to settle the mounting fees of their delayed merger of Warner Bros. Discovery. This move came as 12 state Attorney Generals filed an antitrust lawsuit to block the merger, contending that a "proper bond" is necessary when states or private parties challenge a merger and an injunction is issued.
The DOJ disagreed with the states' claim that the bond is only required if a court finds that a preliminary injunction was "improperly granted." The regulator's position would effectively nullify the statute's plain language, raising separation-of-power concerns, and elevating states to a status comparable to the federal government.
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