US Justice Department Backs Bond Requirement in Paramount-Warner Bros. Antitrust Case

Sept 15 (Reuters) - The U.S. Justice Department on Tuesday pressed a federal court to require states trying to block Paramount Skydance's $110 billion takeover of Warner Bros Discovery to post a "proper bond" that would cover costs tied to any delay in closing the deal.

In a filing with a federal court in California, the department said states and other private plaintiffs who seek a preliminary injunction under federal antitrust law must post a bond covering potential damages should that order be overturned at a later point.

The filing lands as a coalition of 12 states, led by California, works to block the transaction, contending the deal would produce a media giant with the power to raise prices in film and television. The Writers Guild of America has also filed suit to challenge the deal.

Last month, Paramount asked a U.S. judge to require the states to post a $1.88 billion bond. If the acquisition does not close by September 30, the company faces a fee of $7 million a day.

Paramount said the trial is set for March, and that by the time a ruling is reached and final briefs are filed in April, it would have paid Warner Bros. shareholders $1.3 billion in unrecoverable "ticking fees."