DOJ sides with Paramount over nearly $1.9 billion bond request

(KYMA) - The U.S. Department of Justice (DOJ) said they are siding with Paramount Skydance over their request for a $1.88 billion bond regarding the delay of the proposed merger between Paramount and Warner Bros. Discovery (WBD).

In a court document filed Tuesday, the DOJ said a "proper bond" is required after states or other private parties challenge a merger, as well as when an injunction has been issued.

This comes one week after Paramount reiterated their request for a $1.88 billion bond after the attorneys general filed a court document rejecting the bond request.

Back in June, the DOJ approved the merger between Paramount and WBD, saying, "The transaction is not likely to result in harm to competition or American consumers."

A month later, 12 state attorneys general, including Arizona and California, and the Writers Guild of America (WGA) sued to block the merger.

As a result of the lawsuits, Paramount announced they were delaying the merger, with Judge Araceli Martinez-Olguin setting a trial date for March of next year.

Meanwhile, the United Kingdom, Mexico, and other countries approved the merger.

Last month, Paramount requested a $1.88 billion bond from the 12 states to cover their losses over the merger's delay, with Judge Martinez-Olguin setting a hearing on the request for September 24.

Also last month, Iowa Attorney General Brenna Bird and Montana Attorney Austin Knudsen asked the U.S. Supreme Court (SCOTUS) to stop the antitrust lawsuit, claiming it's a "politicized enforcement action," resulting in SCOTUS issuing an order for the state attorneys general to respond to the objection by September 25.

L.A. Mayor Karen Bass called on California Attorney General Rob Bonta and Paramount "to come to the table" and reach a settlement.

Earlier this month, the Block the Merger Coalition held a protest outside Paramount Studios in Los Angeles to thank the state attorneys general for "holding firm in their lawsuit" to block the proposed merger.

Late last week, U.S. Magistrate Judge Thomas Hixson issued an order to Paramount, the attorneys general and the WGA to appear in an in-person settlement conference regarding the merger.

"A court-ordered settlement conference means the judge required both sides to meet, but it does not indicate a settlement is in progress. This is standard course in a case of this magnitude," said a spokesperson for the California DOJ.