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

Sept 15 (Reuters) - The ‌U.S. Justice ​Department ​on Tuesday urged a federal court to require states seeking to block Paramount Skydance's $110 ‌billion takeover of Warner Bros Discovery to ⁠post a "proper bond" covering the costs of any delay in ‌completing the deal.

The Justice ‌Department said in a filing with a federal court in California that states and other private ​plaintiffs seeking a preliminary injunction under federal antitrust law must post a bond to ⁠cover potential damages if the order is later overturned.

The filing comes as ​a coalition of 12 states, led by California, seeks to block the transaction, arguing ​that the deal would create ‌a media behemoth with the power to raise prices in film and ⁠television. The Writers Guild of America has also sued to challenge the deal.

Last month, Paramount asked a U.S. ⁠judge to require the states to post a $1.88 billion bond. ​The company must pay a fee of $7 million a day if the acquisition does not close by September 30.

Paramount ‌said the trial is set for March and, by the time a ruling ‌is reached and final briefs are filed in ⁠April, it would have ‌paid Warner Bros. ​shareholders $1.3 billion in unrecoverable "ticking fees."

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim ‌Zahid)

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