US DoJ backs bond demand in Paramount-Warner Bros antitrust fight

The U.S. Justice Department has backed the demand for a bond from Paramount Skydance in the ongoing antitrust fight against the proposed $110 billion acquisition of Warner Bros Discovery. The DOJ has urged a federal court in California to require states, led by California, to post a bond to cover potential damages if the injunction is later overturned.

This comes as the coalition of 12 states argues that the deal would create a dominant media entity with the power to raise prices in the film and television industry. The Writers Guild of America has also joined the lawsuit challenging the proposed acquisition. Paramount has requested a $1.88 billion bond, with the company facing a $7 million daily fee if the acquisition does not complete by September 30.

A trial is set for March, with final briefs expected in April, during which Paramount would have paid Warner Bros. shareholders $1.3 billion in unrecoverable penalties.

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