Oregon AG Withdraws Motion to Delay $110B Paramount-Warner Bros. Merger

The Oregon attorney general’s office has withdrawn a court motion aimed at delaying the proposed $110 billion merger between Paramount and Warner Bros. Discovery. The state agency accused Paramount of failing to comply with an investigative demand and said it is now considering its next legal steps.

A Shift in Legal Tactics

The Oregon Department of Justice announced on Friday it had pulled its motion, which was filed earlier this week in a Multnomah County court. In a statement to Reuters, the department indicated its probe was not over.

"Paramount made it clear that they weren’t going to comply with the investigative demand, and that they think they’re above the law," the agency said. "We’ve withdrawn the motion to consider our next steps."

Background on the Dispute

Oregon's initial legal action sought to pause the transaction for 60 days to allow for a review of key documents. Amid the state's review, Paramount had agreed not to finalize the acquisition before July 22, according to the attorney general's office.

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The state is seeking records related to "Project Warrior," Paramount’s internal code name for its strategy to secure regulatory approval, as well as documents concerning lobbying efforts. A Paramount spokesperson told Reuters the company was "pleased" with the withdrawal, calling the merger "lawful" and "pro-competitive."

Wider Scrutiny Remains

While Oregon's move removes one immediate procedural hurdle, the landmark deal continues to face significant scrutiny. The proposed combination of two of Hollywood’s four major studios has sparked concerns among actors and writers about potential job losses and reduced competition.

This development does not signal a clear path for the merger. According to a Reuters report, several other U.S. states are also investigating the deal's competitive implications and could file a lawsuit to block the acquisition as early as next week.