Overview
- The Justice Department filed a statement of interest on Tuesday, Sept. 15, siding with Paramount’s request that the plaintiffs post a $1.88 billion bond under Section 16 of the Clayton Act to protect the company from losses if a court’s injunction is later overturned.
- The coalition of 12 state attorneys general and the Writers Guild oppose a large bond and say any security should be nominal because no preliminary injunction was formally issued, a legal reading the DOJ directly disputes in its filing.
- A judge will decide the bond question at a Sept. 24 hearing, the $7 million‑per‑day ticking fee in the merger contract is scheduled to begin Oct. 1, the court ordered a two‑day settlement conference for Oct. 14–15, and a full merits trial is set for March 2, 2027.
- The financial stakes are high: Paramount warns ticking fees could reach more than a billion dollars by the time the case is resolved and the merger agreement includes a $7 billion termination fee if the deal fails, with company leaders also threatening to relocate operations and local officials warning of large job and tax losses.
- Most federal and many foreign regulators cleared the deal earlier this year and the DOJ’s intervention shifts the balance of power in settlement talks by framing state and private challenges as subject to bond rules that traditionally limit those plaintiffs compared with federal enforcers.