UPDATE, August 27: The judge has set the bond hearing for September 24, one week before the $7 million-a-day fee starts. Here is the full case calendar through the March 2027 trial.
UPDATE, August 18: The pressure on Bonta grew a day later. Cinemark came out in support of the merger and Cinema United asked Bonta and Ellison to meet.
Paramount is asking the federal judge in its Warner Bros. Discovery merger case to make the 12 states and the Writers Guild of America post a $1.88 billion bond.
Put simply, Paramount wants a pool of money available if it wins and proves the court delay caused recoverable losses.
Puck News legal reporter Eriq Gardner first flagged the filing Monday.
Deadline then reported that the request covers the $7 million-per-day fee Paramount must begin paying Warner Bros. shareholders on October 1, plus financing costs tied to keeping the deal alive.
Update: Bonta responded:
“Paramount and Warner Bros. are two sophisticated companies who willfully decided to include a costly ticking fee as a provision in their merger contract. They knew this merger would undergo regulatory review; they knew it was not a done deal; and they chose to include it anyway.
What’s more, Paramount itself stipulated to the timing it is now protesting — they agreed to the dates and did not request a bond as a condition of agreeing not to close until after the trial, and potentially as late as June 2027. Now, they’re trying to get a do-over.
Bottom line: Paramount went into this process with eyes wide open. They are lying in a bed of their own making, and once again, trying to blackmail us to get us to back down.”
What A $1.88 Billion Bond Means
A bond is not a $1.88 billion fine, and the plaintiffs would not hand the money directly to Paramount today.
It would act as security while the lawsuit moves forward.
If Paramount wins and the court finds the delay caused damages covered by the bond, the company could seek recovery from it.
Judge Araceli Martínez-Olguín can reject the motion, lower the amount, or require a different form of security.
Why Paramount Wants $1.88 Billion
The merger clock changes on October 1.
Paramount agreed to pay Warner Bros. shareholders about $7 million for every day the deal remains open after September 30.
The company says those ticking fees will reach about $1.3 billion by the time the March 2027 trial ends.
Added financing costs bring its request to $1.88 billion.
Paramount argues that even a complete win at trial would not return any of that money.
The 30-page motion also warns that some regulatory approvals could expire while the case remains in court, forcing the companies to spend more money and seek clearance again.
The Judge Waived A Bond Before
When Martínez-Olguín first froze the merger, she waived the usual security requirement because the states said they were acting to protect the public.
Paramount now wants the court to change that part of the order.
Its lawyers argue the March trial date and the daily fees create a much larger financial risk than the judge faced at the start of the case.
The states have called the ticking fee a self-imposed cost because Paramount promised it to Warner Bros. shareholders.
Paramount’s motion says that argument should not excuse them from posting a bond.
Settlement Talks Are Taking Shape
The bond fight arrives as the same case starts moving toward a possible settlement conference.
In last week’s joint case update, both sides told the judge they were having “constructive discussions” about choosing two magistrate judge candidates who could oversee a settlement conference.
No settlement negotiation has started. The parties are choosing the referee who could run one.
Fact discovery starts today and runs through January 8. During that period, lawyers can demand documents, question executives, and test each side’s case.
For Warner Bros. and DC fans, discovery could also bring Paramount’s integration plans and possible DC changes into the court record.
Hollywood labor remains split. The DGA and IATSE have urged both sides to settle with written protections, while the WGA continues trying to block the merger.
October 1 Is Now The Pressure Point
October 1 already marked the start of the $7 million daily fee.
The bond request puts both pressure campaigns into one number: $1.88 billion.
We also broke down what California could lose if Paramount follows through, including jobs, spending, taxes, and the studio’s Hollywood lot.
What Happens Next
The plaintiffs (the states) can challenge the amount and argue that public-interest antitrust cases should not carry a bond large enough to discourage the lawsuit.
Paramount will argue that the plaintiffs should not be able to delay a deal for months without covering the damage if they lose.
Judge Martínez-Olguín will decide.
Meanwhile, discovery moves ahead, the sides keep choosing a settlement referee, and the March 2, 2027 trial remains on the calendar.
Paramount is no longer only warning about the cost of delay. It is asking the court to attach a $1.88 billion price tag to it.
