Oregon Withdraws Motion to Delay Paramount's $110B Warner Bros. Acquisition

The Oregon attorney general’s office on Friday withdrew its court motion to delay Paramount's proposed $110 billion acquisition of Warner Bros., a sudden reversal in the state's legal challenge to the media mega-merger. The state agency accused Paramount of failing to cooperate with its investigative demands.

Oregon Reconsiders Legal Strategy

The Oregon Department of Justice stated it was pulling back to evaluate its next course of action, alleging a lack of cooperation from the media giant. "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 "We’ve withdrawn the motion to consider our next steps."

In response, a Paramount spokesperson told Reuters the company was "pleased that the Oregon Attorney General has withdrawn its motion to delay this transaction." The company described the proposed merger as both "lawful" and "pro-competitive."

Details of the State's Demands

Earlier in the week, Attorney General Dan Rayfield’s office had asked a Multnomah County court to compel Paramount to produce documents and postpone the deal's closing by 60 days. The state was seeking records related to:

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• "Project Warrior," Paramount’s internal code name for its efforts to secure regulatory approval.
• The company's lobbying activities directed at the Trump administration concerning the merger.

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

Broader Scrutiny Continues

The withdrawal of Oregon's motion removes one obstacle but does not clear the path for the deal, which would combine two of Hollywood's four major studios. The acquisition has faced significant criticism from industry groups, including actors and writers, who fear widespread job losses and reduced competition.

More critically for investors, the merger remains under review by other U.S. states. According to a Reuters report, a multi-state lawsuit seeking to block the acquisition on antitrust grounds could be filed as early as next week, signaling that significant regulatory hurdles remain.