Justice Department backs Paramount call for $1.88bn bond in Warner Bros fight
The U.S. Department of Justice has sided with Paramount in its bid to buy Warner Bros., arguing that 12 states trying to block the deal should be forced to put up a $1.88 billion bond.
Paramount says it stands to lose at least that amount from delay caused by the states' antitrust lawsuit, a case that challenges a merger on competition grounds. The figure frames what is at stake for staff and schedules while the deal sits in court, not just for shareholders. Variety
Paramount has asked Judge Araceli Martinez-Olguin to order the states to post the $1.88 billion bond. A bond here means money set aside to compensate Paramount if it wins at trial. A hearing on that request is set for 24 September.
The Justice Department made its position clear in a "statement of interest" filed on Tuesday, 15 September, in the states' case. That filing is a formal note to the court from a non-party, and in it the department said the states must post a "proper bond" because they are acting as "private persons" enforcing federal antitrust law. The department is not a party to the state litigation. It approved the Paramount-Warner Bros. merger in June.
The challenge comes from a coalition of 12 states led by California Attorney General Rob Bonta. The group filed suit in July in the U.S. District Court for the Northern District of California to stop the merger, with a focus on competition in cinema and basic cable markets. Basic cable means the standard pay-TV channels sold in a bundle.
The states allege the deal violates Section 7 of the Clayton Act, the U.S. law that bars mergers that may substantially reduce competition. California Attorney General's Office The proposed bid by Paramount Skydance Corp. for Warner Bros. is valued at $110 billion. Bloomberg
Paramount voluntarily agreed in July not to close the deal until after a trial is held. Trial is now scheduled to begin on 2 March.
The court fight has longer roots. On 12 January 2026, Paramount filed a complaint in the Court of Chancery of the State of Delaware naming Warner Bros. as a defendant, according to a Paramount securities filing.
For viewers, this means nothing changes yet. No channels merge, no libraries move, and no production plans are settled until the court rules.
