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

The Oregon attorney general’s office has withdrawn a court motion that sought to delay Paramount's proposed $110 billion acquisition of Warner Bros. In a statement, the state's Department of Justice accused Paramount of failing to comply with an investigative demand and said it was pulling the motion to "consider our next steps."

State Cites Company's Non-Compliance

The Oregon Department of Justice issued a sharp statement to Reuters on Friday, signaling that its scrutiny of the deal is 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 department said.

"We’re not going to let them waste Oregonians’ resources on these games," the statement continued, explaining the decision to withdraw the motion. This move removes an immediate legal obstacle for the merger but suggests the state may pursue other avenues.

Background on the Legal Challenge

Earlier this week, Attorney General Dan Rayfield’s office had asked a court in Multnomah County to order Paramount to hand over records and delay the deal by 60 days for a state review. According to the report, Paramount had agreed not to finalize the transaction before July 22.

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Oregon's investigation is seeking specific documents, including:

• Records related to "Project Warrior," Paramount’s internal code name for its efforts to secure regulatory clearance.
• Information concerning the company’s efforts to lobby the Trump administration for support of the merger.

Broader Scrutiny of the Mega-Merger

A Paramount spokesperson told Reuters the company was "pleased" with the withdrawal, calling the merger "lawful" and "pro-competitive." However, the deal, which would combine two of Hollywood’s four major studios, continues to face significant headwinds.

Actors, writers, and other industry groups have criticized the proposed merger, fearing substantial job losses and reduced creative competition. The transaction also faces potential legal challenges from other states, with Reuters reporting that a multi-state lawsuit to block the acquisition on antitrust grounds could be filed as early as next week.