Oregon withdraws motion to delay Paramount’s $110bn Warner Bros deal, scrutiny continues

CALIFORNIA: One legal roadblock has been cleared, but Paramount’s biggest deal is far from out of the woods.

The Oregon Department of Justice has withdrawn its court motion seeking to delay Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery, ending, at least for now, an effort to pause one of the entertainment industry’s largest mergers.

The state’s attorney general’s office, however, made it clear that the withdrawal does not mark the end of its investigation.

“Paramount made it clear that they weren’t going to comply with the investigative demand, and that they think they’re above the law. We’re not going to let them waste Oregonians’ resources on these games,” the Oregon Department of Justice said in a statement to Reuters. The department added that it had withdrawn the motion to “consider our next steps”.

Earlier this week, Oregon Attorney General Dan Rayfield had asked a Multnomah County court to compel Paramount to produce documents and postpone completion of the transaction by 60 days while the state reviewed the merger.

According to Reuters, the state is seeking internal documents linked to “Project Warrior”, Paramount’s codename for securing regulatory approval for the transaction. Investigators are also seeking records relating to the company’s lobbying efforts with the administration of Donald Trump in connection with the merger.

Paramount welcomed the latest development.

“We are pleased that the Oregon Attorney General has withdrawn its motion to delay this transaction,” a company spokesperson told Reuters, describing the proposed merger as “lawful” and “pro-competitive”.

Despite the withdrawal, regulatory uncertainty continues to hang over the transaction.

Reuters previously reported that several other US states are examining the merger and could move to challenge it as early as next week on competition grounds. The combination would unite two of Hollywood’s four major studios, creating one of the world’s largest entertainment companies.

The proposed acquisition has also drawn criticism from actors, writers and other industry groups, who fear the merger could trigger significant job cuts and further consolidate power within the global media industry.

For Paramount, the latest legal reprieve removes one immediate obstacle. But with multiple regulatory reviews still under way and antitrust concerns gathering momentum, the battle over Hollywood’s next mega merger is entering its next act.