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

The Oregon attorney general’s office on Friday withdrew its court motion seeking to delay Paramount's proposed $110 billion acquisition of Warner Bros. (NASDAQ: WBD). The state accused Paramount of stonewalling an investigation into the mega-merger, which faces mounting scrutiny from regulators and industry groups.

Dispute Over Internal Records

The Oregon Department of Justice said it pulled the motion because Paramount refused to cooperate with its investigative demands. "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 department said in a statement to Reuters. "We’ve withdrawn the motion to consider our next steps."

Earlier this week, Attorney General Dan Rayfield’s office had asked a Multnomah County court to compel Paramount to turn over documents and to pause the deal for 60 days for review. Oregon is seeking records related to:

• "Project Warrior," Paramount’s internal code name for its efforts to secure regulatory clearance.
• The company's lobbying of the Trump administration in support of the merger.

Amid the state's review, Paramount had previously agreed not to close the transaction before July 22, according to the attorney general's office.

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Deal Faces Wider Scrutiny

A Paramount spokesperson told Reuters the company was "pleased that the Oregon Attorney General has withdrawn its motion," describing the merger as both "lawful" and "pro-competitive."

The proposed deal, which would consolidate two of Hollywood's four major studios, has triggered significant opposition. Actors, writers, and other industry professionals have raised concerns about potential job losses and reduced competition.

The acquisition also faces potential legal challenges from other U.S. states. According to a Reuters report, a coalition of states could file a lawsuit to block the deal on antitrust grounds as early as next week, signaling that regulatory hurdles for the landmark transaction are far from over.