The Justice Department on Tuesday filed a statement of interest supporting Paramount Skydance's request that states seeking to block its $110 billion acquisition of Warner Bros. Discovery post a bond to cover costs from any delays in completing the deal.

The filing came in response to Paramount's motion asking U.S. District Judge Araceli Martinez-Olguin to require the 12 plaintiff states and the Writers Guild of America to post a bond of approximately $1.88 billion. Paramount has argued that the states' lawsuit has delayed the transaction, which was cleared by the Justice Department in June without conditions after an eight-month review.

The states, led by California Attorney General Rob Bonta, filed their antitrust suit in July alleging the combination would reduce competition in film distribution and cable television licensing. The suit followed approvals from the Trump administration's Justice Department and regulators in dozens of other jurisdictions.

Paramount has agreed to delay closing the deal until after a trial scheduled to begin in March 2027. The company contends that without the bond, the states face no financial consequences if their challenge ultimately fails, despite the substantial costs imposed by the holdup.

In its Tuesday filing, the Justice Department argued that the states are acting in the role of private persons when enforcing federal antitrust law and must therefore post a proper bond. The department emphasized that its own investigation found the transaction unlikely to harm competition or consumers.

The bond requirement stems from provisions in the Clayton Antitrust Act and Federal Rule of Civil Procedure 65, which allow courts to protect defendants from losses caused by injunctions that later prove unwarranted. Paramount has cited daily ticking fees and financing costs that mount while the deal remains on hold.

A hearing on the bond issue is set for September 24. The states have opposed the request, arguing they are enforcing important public interests.