From Variety · Gene Maddaus · · 1m 20s
The DOJ wants 12 states to bet $1.9 billion
Washington just put its thumb on the scale in the fight over Paramount's Warner Bros. deal.
In brief
Washington just put its thumb on the scale in the fight over Paramount's Warner Bros. deal. A bond request turns an antitrust lawsuit into a financial dare: keep blocking the merger, but put $1.88 billion on the line if you lose. Originally reported by Variety.
Washington picks a side
On Tuesday the Justice Department filed in support of Paramount, against the 12 states trying to stop its Warner Bros. merger.
“The Department of Justice sided with Paramount on Tuesday”
Twelve states, one lawsuit
A coalition of state attorneys general sued on antitrust grounds, and their case is what is holding the deal in limbo.
The delay has a price
Paramount says the holdup costs it at least $1.88 billion, and it wants that number attached to the states' case.
“Paramount has argued that it stands to lose at least $1.88 billion”
Post a bond to keep fighting
The ask is simple and sharp: the states can keep blocking the merger, but only if they put up money first.
“a bond as the price of continuing to block the Warner Bros. merger”
Paid back if Paramount wins
The bond would cover Paramount's losses if it beats the states at trial, so the states would carry real financial risk for losing.
One judge decides
Judge Araceli Martinez-Olguin now rules on whether the states pay to keep their injunction, or hold the line for free.
The bottom line
A bond request turns an antitrust lawsuit into a financial dare: keep blocking the merger, but put $1.88 billion on the line if you lose.
