Paramount asks states to put up $1.88 billion bond in attorneys general lawsuit

(The Center Square) – A hearing has been scheduled for Sept. 24 involving a bond request from Paramount Skydance amid its legal battles over a proposed merger with Warner Bros. Discovery that could put state governments on the hook for nearly $2 billion.

California Attorney General Rob Bonta is leading 12 states suing to block the acquisition of Warner Bros. Discovery by Paramount Skydance. Speaking at a July press conference announcing the lawsuit, Bonta said the merger would extinguish competition.

"It would result in higher prices, lower content quality, and fewer movies and TV shows,” said Bonta. “Movie theaters, basic cable TV distributors, and audiences on every sofa and in every movie seat would feel the impact of this unlawful merger.”

Paramount – which saw the deal approved by the Department of Justice’s Antitrust Division on June 12, 2026 – has argued that it stands to lose at least $1.88 billion due to the delay resulting from the lawsuit. As a result, Paramount has asked Judge Araceli Martinez-Olguin to request that states post a bond of that amount to compensate Paramount if it wins.

The U.S. Department of Justice has sided with Paramount on the bond request.

Wayne Winegarden, Ph.D., at the Pacific Research Institute thinks it is “fantastic” that the DOJ got involved.

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“One of the problems that we have with these states is that there's no cost to their action,” Winegarden told The Center Square in a phone interview. “If they get it from the AG's perspective, it's all political game, win or lose, and so they have no skin in the game.”

“If you've got a good justification, you won't have to pay it, but your actions are imposing large costs on the company,” Winegarden said. “If this is frivolous or if this is found to have no justification, you should cover those costs.”

When reached for comment, Bonta’s office told The Center Square that it stands behind its briefing in this matter and looks forward to presenting the case at the Sept. 24 hearing.

In addition to the bond request, Paramount has also informed city and state officials in California that it may leave California over the lawsuit. Such a move could impact tens of thousands of direct jobs.

Winegarden said people underestimate the signals that policy sends.

“It's the same thing with the wealth tax that's being considered,” Winegarden said. “With Paramount, the hostility that the AGs are showing is a signal."