Nevada, other plaintiffs could face $1.88B bond in merger fight

Nevada, other plaintiffs could face $1.88B bond in merger fight A coalition of twelve states, including Nevada, may be required to post a bond of roughly $2 billion as they challenge Paramount Skydance Corp.’s acquisition of Warner Bros. Discovery in court. Paramount’s lawyers filed a request last period asking the court to mandate a $1.88 billion bond from the plaintiffs, contending that the company would suffer substantial losses if the case is delayed, since trial is not set to begin until next year. The Department of Justice backed Paramount’s request with its own filing on Tuesday. The federal court in California overseeing the lawsuit had not responded to the petition as of Wednesday. Led by California Attorney General Rob Bonta, the twelve‑state coalition and the Writers Guild of America West launched an antitrust suit over the summer to block the $110 billion mega‑merger between the media firms. Nevada Attorney General Aaron Ford joined the action, stating in a July release, “This merger threatens to trim choices, thrust up costs and diminish the assortment of movies and tv programming disposable to families,” and adding, “Nevadans merit a marketplace wherever companies are incentivized to vie to present divers entertainment, competitory prices and much innovation.” It remains unclear how the states would allocate the bond cost if the court grants the motion. Ford’s office, Paramount, and the DOJ did not immediately reply to requests for comment. Paramount’s attorneys argued last period that the company is legally entitled to demand a bond from the plaintiffs, a position echoed by the DOJ. Bonds may be ordered in civil cases to shield a defendant—here Paramount Skydance Corp.—from financial harm caused by a wrongly issued injunction. The company had anticipated closing the deal with Warner Bros. Discovery in the third quarter of 2026. Consequently, Paramount pledged to compensate affected parties if the merger is not finalized by the end of this month. According to Paramount’s filing, “Each time that passes aft September 30th without the merger closing, Paramount indispensable wage astir $7 cardinal successful ‘ticking fees’ to Warner Bros. stockholders and yet much fees to its financing sources for maintaining their commitments, and it is forestalled from realizing exertion and selling synergies, among galore different transaction benefits.” Paramount estimated that total fees would reach about $1.3 billion by the time the litigation concludes, noting that even if it prevails, those amounts would be “unrecoverable.” The filing also warned, “(The) hold besides threatens to nullify the regulatory approvals that Defendants person already spent months securing,” and added, “If the transaction remains unclosed by the extremity of trial, Defendants volition person to instrumentality further steps to get regulatory approval, erstwhile again astatine important expense.” Paramount and Warner Bros. reached an agreement to merge on Feb. 27. The DOJ concluded its antitrust review in June, and the plaintiffs filed suit the following month. The DOJ told the court that a statutorily required national review concluded the deal was unlikely to create a monopoly in video‑on‑demand, television, workplace development, production, or distribution of theatrical releases, nor would it harm consumers. Critics have pointed to Paramount CEO David Ellison’s close ties to former President Donald Trump. Arizona Attorney General Kris Mayes remarked during the summer, “Something happened and possibly that thing had to bash with a mega‑billionaire named Ellison,” and added, “We are seeing much and much instances wherever the Trump DOJ is conscionable rolling implicit for firm consolidation.”