DOJ backs Paramount's push for $1.88 billion bond from states blocking merger

The U.S. Department of Justice entered the Paramount-Warner Bros. antitrust dispute by filing a statement of interest that supports the studio’s demand that the 12-state coalition post a bond covering the $1.88 billion it says it will lose from the merger’s delay. Paramount, which had earlier agreed to pause the deal pending trial, now seeks to force the states to secure the bond or allow the merger to proceed. The states, led by California, sued in July to block the transaction on competition grounds, and the court scheduled a trial for March 2.

Judge Araceli Martinez-Olguin previously issued a temporary restraining order without requiring a bond, but a hearing on the bond request is set for Sept. 24. The DOJ, though not a party to the state lawsuit, contends the states are acting as private litigants enforcing federal antitrust law and therefore should post a “proper bond.” The states argue that waiving bonds is standard in public-interest suits and that imposing one would cripple their enforcement ability.