Oregon seeks 60-day delay to Paramount’s $110 billion Warner Bros. deal

MUMBAI: The biggest blockbuster in Hollywood may have to wait for an intermission. Just as Paramount prepares to close its proposed $110 billion acquisition of Warner Bros., Oregon is asking the courts to press pause, arguing it still has unanswered questions about the company’s lobbying efforts.

According to documents reviewed by Reuters, Oregon Attorney General Dan Rayfield will ask a court in Multnomah County to delay the transaction by 60 days and compel Paramount to hand over records linked to its regulatory strategy before the deal can proceed.

Although Paramount has told the state it does not intend to complete the acquisition before 16 July, Oregon argues that additional time is needed to review documents it believes are relevant to its antitrust assessment.

In a statement, Rayfield said the state would not allow the company to withhold information while moving ahead with a merger that could have implications for Oregon’s film industry, economy and consumer choice.

At the centre of the dispute are documents related to “Project Warrior,” Paramount’s internal code name for its regulatory clearance efforts. Oregon is also seeking records relating to the company’s lobbying of the Trump administration in support of the acquisition, along with information on whether Paramount had any involvement in the US Department of Justice’s public announcement approving the deal.

Court filings reviewed by Reuters indicate that while Oregon would ordinarily give significant weight to the DOJ’s approval, it intends to reference a Wall Street Journal report alleging that senior Justice Department officials overruled career antitrust lawyers who had been considering challenging the merger.

Paramount has rejected the state’s allegations, arguing that the requested lobbying records have no bearing on whether the acquisition complies with Oregon’s antitrust laws. The company maintains it has already supplied documents relevant to the merger and described the deal as lawful and pro-competitive.

Last month, the US Department of Justice said it believed the merger would strengthen competition across the media and entertainment industry while benefiting consumers and workers. Paramount has similarly argued that combining the two companies would create a stronger streaming competitor to Netflix and Disney, while expanding opportunities for creative talent.

The proposed takeover has also attracted political attention. Reuters reported that Larry Ellison, co-founder of Oracle and father of Paramount CEO David Ellison, has developed close ties with President Donald Trump, while the company has hired several former Trump administration officials.

The legal battle is widening beyond Oregon. Earlier reports suggested that California, New York and several other US states are also preparing challenges to the merger, arguing they have the authority to oppose transactions they believe could reduce competition. Actors, writers and other media professionals have also raised concerns that the combination could trigger job losses across the entertainment industry.