Paramount says California AG contradicted bond arguments in TV interviews

Paramount Skydance PSKY.O said on Tuesday that California Attorney General Rob Bonta made statements in television interviews that undermine his legal arguments against the company's request for a $1.88 billion bond in the Warner Bros. Discovery WBD.O merger case.

Paramount is looking to insulate itself against the cost of delaying its bid to become a major rival of Netflix NFLX.O and Disney DIS.N, as California and others seek to block the deal as illegal.

Paramount has said a bond is necessary so the company can recover losses if it wins cases brought by a California-led group of states and the Writers Guild of America. By the time the case is scheduled to conclude in April, Paramount has said it will have paid Warner Bros shareholders $1.3 billion in fees.

One of Bonta's legal arguments against the bond is that Paramount voluntarily agreed to pause closing the deal, rather than wait for a judge to issue an injunction pausing the transaction.

But Bonta has described the pause as equivalent to an injunction in television interviews, Paramount said on Tuesday, arguing that antitrust law requires the states to post a bond.

Bonta's office did not immediately respond to a request for comment.

U.S. District Judge Araceli Martinez-Olguin in Oakland has scheduled a hearing on Paramount's bond request for September 24.

California and 11 other states sued to block the deal in July, saying it would create a media behemoth with the power to raise prices in film and television. The Writers Guild of America has also sued, saying it would worsen working conditions and pay for writers.

Paramount has said the deal will strengthen the film and TV industry and lead to more, rather than less, content.

While Paramount and Bonta have both said they are willing to negotiate, Bonta has said the states are ready to go to trial if a potential settlement does not address their concerns.