TV

DOJ Takes Paramount’s Side Against States in Fight Over $1.9 Billion Bond

The Department of Justice sided with Paramount on Tuesday, arguing that a coalition of 12 states should be forced to post a bond as the price of continuing to block the Warner Bros. merger. Paramount has argued that it stands to lose at least $1.88…

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The Department of Justice sided with Paramount on Tuesday, arguing that a coalition of 12 states should be forced to post a bond as the price of continuing to block the Warner Bros. merger.

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Paramount has argued that it stands to lose at least $1.88 billion due to the delay resulting from the states’ antitrust lawsuit. The company has asked Judge Araceli Martinez-Olguin to require the states to post a bond in that amount, which would compensate the company in the event that it prevails at trial.

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The DOJ is not a party to the state litigation, but filed a “statement of interest” in the case on Tuesday. The document argues that the states must post a “proper bond” because they are acting in the role of “private persons” in enforcing federal antitrust law.

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The DOJ approved the Paramount-Warner Bros. merger in June and issued an unusual and lengthy statement explaining its support for the transaction. The 12-state coalition, led by California, reached the opposite conclusion in July, filing suit to prevent the merger from reducing competition in the theatrical and basic cable markets. A trial is scheduled to begin on March 2.

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Paramount voluntarily agreed not to close the…

Original source: https://variety.com/v/tv/

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