DOJ Supports Paramount Request for $1.88 Billion State Bond

The United States Department of Justice filed a statement of interest on Tuesday supporting a request by Paramount+ that a coalition of 12 states post a $1.88 billion bond. The bond would serve as compensation for financial losses Paramount claims resulted from the delay of its merger with Warner Bros. Entertainment.

A coalition of 12 states, led by California, filed an antitrust lawsuit in July to block the merger, arguing the deal would reduce competition in theatrical and basic cable markets. The states contend that bond requirements are typically waived for government entities enforcing public interests and that such a requirement would undermine their enforcement power.

The federal government had previously approved the merger in June. Judge Araceli Martinez-Olguin has scheduled a hearing on the bond request for September 24, followed by a confidential settlement conference on October 14-15. A trial is set to begin on March 2.