Paramount Global has requested a $1.88 billion bond from state attorneys general as part of ongoing legal proceedings related to its pending merger, according to court documents filed on Friday.
The bond, outlined in a filing with the Delaware Chancery Court, is intended to cover potential financial obligations arising from antitrust litigation brought by multiple state attorneys general. The lawsuit, initiated in 2022, alleges that Paramount’s proposed merger violates antitrust laws by reducing competition in the media and entertainment sector.
The request for the bond follows a Delaware court ruling in January that allowed the merger to proceed while requiring Paramount to post a bond to ensure potential damages could be covered. The company has argued that the $1.88 billion amount reflects the estimated costs of litigation, including legal fees and potential settlements, should the merger face further legal hurdles.
Paramount’s motion did not specify the states involved in the lawsuit but noted that the attorneys general from California, New York, and several other states have been active in opposing the merger. The company has stated that the bond is a standard procedural step to mitigate financial risk during the litigation process.
The merger, which involves a major restructuring of Paramount’s ownership structure, remains subject to regulatory and judicial review. Analysts have noted that the outcome of the lawsuit could have significant implications for the broader media consolidation landscape, particularly if the court rules against the merger on antitrust grounds.
A hearing on the bond request is scheduled for next month, with legal experts anticipating further developments in the case as it progresses through the courts.
