Oregon AG Seeks 60-Day Delay of Paramount-Warner Bros. Merger, Questions DOJ Approval

Oregon's attorney general has asked a state judge to postpone the closing of the Paramount-Warner Bros. merger by 60 days, as state investigators probe whether the deal violates antitrust law and whether the federal government's approval was properly reached.

Judge Eric Dahlin of Multnomah County Superior Court is scheduled to hear the motion on Monday. Lawyers representing Paramount Skydance have already notified the court that they do not plan to finalize the Warner Bros. acquisition before July 22.

States Press On With Antitrust Investigation Despite DOJ Clearance

The U.S. Department of Justice gave its approval to the merger last month, releasing an uncommon public statement explaining its decision not to challenge the transaction. The agency argued that the deal would “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”

Despite the federal green light, a coalition of states — including California and New York alongside Oregon — continues to investigate whether the merger violates antitrust statutes. The states had previously been informed that the transaction would not close before July 16, a communication that effectively established a deadline for states to seek an injunction if they wished to halt the deal.

Oregon Alleges Possible ‘Corrupt Bargain’ Behind Federal Approval

Oregon Attorney General Dan Rayfield has demanded that Paramount Skydance produce records related to its lobbying efforts directed at the White House and the DOJ. In a court filing, Rayfield's office suggested that the federal approval may have been “the product of a corrupt bargain” rather than the result of a thorough regulatory review.

The motion filed by the state articulates a clear distinction between a genuine federal investigation and a politically influenced decision. “The State would ordinarily afford great weight to a US DOJ approval based on the federal government's significant investigatory resources,” the motion states. “If US DOJ's merger approval was not the product of its investigation, however, the State would tend to afford it little to no credit.”

Paramount has objected to the state's subpoenas, pushing back by arguing that any lobbying activity is irrelevant to the question of whether the merger violates state antitrust law. The company's legal team contends that the focus should remain on the competitive effects of the transaction itself.

Paramount Accused of Stonewalling State Investigators

In a press statement issued on Tuesday, Rayfield accused Paramount of deliberately evading his office's investigative demands, characterizing the company's behavior as an attempt to run out the clock before the merger closes.

“We're not going to let Paramount Skydance play hide the ball so they can rush through their massive merger,” Rayfield said. “Oregonians have a real stake in this deal – in our film industry, in our economy, in the choices they'll have as consumers. Paramount had every opportunity to hand over records and answer a few basic questions. Instead, it is trying to run out the clock and evade scrutiny. We're asking the court to make sure Oregonians get the answers they're owed before this deal closes, not after.”

Court Scheduling Complications Delay Initial Hearing

The hearing on Oregon's motion was originally set to take place before Presiding Judge Judith Matarazzo at 1:30 p.m. on Wednesday. However, Matarazzo informed the involved parties that she did not have sufficient time to consider the matter, leading to the rescheduling before Judge Dahlin on Monday.

The outcome of the upcoming hearing could determine whether Oregon and other participating states receive additional time to complete their investigations before the merger is finalized. With Paramount Skydance indicating it will not close the deal before July 22, the court's decision may shape the timeline for one of the media industry's most significant consolidation efforts in recent memory.

As the legal proceedings continue to unfold, the case raises broader questions about the relationship between corporate lobbying and regulatory approval — questions that Oregon is determined to pursue through the courts. Will other states join Oregon in demanding greater transparency before allowing this deal to proceed? Share this article with your network and join the conversation about the future of media industry consolidation.

Source: Variety