Paramount Cites California AG's TV Remarks in $1.88 Billion Merger Bond Dispute

Paramount Skydance asserted Tuesday that California Attorney General Rob Bonta's public statements in television interviews contradict his office's legal arguments against the company's request for a $1.88 billion bond amid antitrust challenges to its merger with Warner Bros. Discovery.

The Bond Dispute

In a court filing, Paramount argued that while the Attorney General's legal team opposes the bond by noting the company voluntarily paused the deal's closing, Bonta himself has described the pause as being "equivalent to an injunction" in TV interviews. According to Paramount, this characterization supports its argument that antitrust law requires the states challenging the merger to post a bond.

Paramount is seeking the bond to insulate itself from financial losses incurred by the delay. The company stated that by the time the case is scheduled to conclude in April, it will have paid Warner Bros shareholders $1.3 billion in fees.

Broader Antitrust Challenge

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The legal maneuvering is part of a larger effort by California and 11 other states to block the merger. In a lawsuit filed in July, the states contended the deal would create a media behemoth with excessive power to raise prices for film and television content. The Writers Guild of America has also filed a separate suit, arguing the merger would harm working conditions and pay for writers.

Paramount has countered these claims, stating the deal will ultimately strengthen the industry and result in more content for consumers, positioning it as a stronger competitor to rivals like Netflix and Disney.

Next Steps

U.S. District Judge Araceli Martinez-Olguin in Oakland has scheduled a hearing on Paramount’s bond request for September 24. According to the Reuters report, the California Attorney General's office did not immediately respond to a request for comment on Paramount's latest filing. While both parties have indicated a willingness to negotiate a settlement, Bonta has said the states are prepared for a trial if their concerns are not addressed.