Paramount reiterates nearly $1.9 billion bond request over WBD merger delay
LOS ANGELES (KYMA) - Paramount Skydance is reiterating their request for a $1.88 billion bond from 12 states suing them over their proposed merger with Warner Bros. Discovery (WBD).
In a press release, Paramount filed court documents Tuesday supporting the request for the 12 state attorneys general and the Writers Guild of America (WGA) to post a bond to help cover their losses in response to the merger's delay.
"If plaintiffs insist that this transaction is paused during the pendency of their lawsuit, they must accept the financial consequences if their challenge ultimately fails. Paramount agreed to delay closing to facilitate a prompt resolution of the case, while expressly preserving its legal rights and we continue to honor that agreement. We are not asking the district court to lift the no-close order, but to require enforcement of the bond that protects our financial interests while the litigation remains pending," a Paramount spokesperson said.
The filing comes a week after the 12 state attorneys general filed a court document rejecting the bond request.
In response to the filing, California Attorney General Rob Bonta's office issued a statement saying, "We believe Paramount's motion has no merit and look forward to presenting our case in court at the September 24th hearing."
Back in July, 12 state attorneys general, including Arizona and California, and the WGA sued to block the merger between Paramount and WBD.
As a result of the lawsuits, Paramount announced they were delaying the merger, with Judge Araceli Martinez-Olguin setting a trial date for March of next year.
Meanwhile, the U.S. Department of Justice, the United Kingdom, Mexico, and other countries approved the merger.
Last month, Paramount requested a $1.88 billion bond from the 12 states to cover their losses over the merger's delay, with Judge Martinez-Olguin setting a hearing on the request for September 24.
In addition, L.A. Mayor Karen Bass called on California Attorney General Rob Bonta and Paramount "to come to the table" and reach a settlement.
Attorney General Bonta canceled a meeting with Paramount, scheduled for Monday, accusing them of leaking information from an earlier meeting.
A Paramount spokesperson responded saying the company was not the source of the leaks, and said they hope the talks can get back on track.
Also last month, Iowa Attorney General Brenna Bird and Montana Attorney Austin Knudsen asked the U.S. Supreme Court to stop the antitrust lawsuit, claiming it's a "politicized enforcement action."
Last week, the Block the Merger Coalition held a protest outside Paramount Studios in Los Angeles to thank the state attorneys general for "holding firm in their lawsuit" to block the proposed merger.
