Paramount seeks $1.88 billion bond from state AGs over merger lawsuit

California and 11 states sued on July 13, arguing the deal would create a media behemoth with the power to raise prices in film and television. The Writers Guild of America has also sued to challenge the deal.

California Attorney General Rob Bonta said Paramount and Warner Bros "are two sophisticated companies who willfully decided to include a costly ticking fee as a provision in their merger contract."

Bonta added Paramount itself agreed earlier to the timing it is now protesting. "Now, they’re trying to get a do-over," Bonta said. "Paramount went into this process with eyes wide open. They are lying in a bed of their own making, and once again, trying to blackmail us to get us to back down."

Similar merger challenges have taken an average of eight months for a judge to rule, a Reuters review of recent cases found.

The lawsuit, filed in Oakland federal court, threatens to derail Paramount CEO David Ellison's bid to transform his company into a major rival of Netflix NFLX.O and Disney DIS.N.