DOJ Backs Paramount's $1.88 Billion Bond Demand Against States

The U.S. Department of Justice has filed a statement of interest supporting Paramount's request that a coalition of 12 states be required to post a $1.88 billion bond to cover potential financial losses from the delayed merger with Warner Bros. Discovery. The filing, submitted on September 15, argues that states acting as private plaintiffs in an antitrust lawsuit must post a bond to protect the defendant from harm if an injunction is later overturned. The bond request stems from a lawsuit filed in July by a coalition led by California Attorney General Rob Bonta, which seeks to block the $110 billion merger on antitrust grounds. Paramount, which had agreed to delay closing the deal until after a trial, now contends the delay is causing substantial financial harm. The company estimates it will incur approximately $1.3 billion in unrecoverable "ticking fees" to Warner Bros. shareholders by the time a trial concludes in early 2027. In its filing, the DOJ emphasized that its own investigation, which reviewed over two million documents from more than 80 parties, concluded the merger was unlikely to undermine competition.