Oregon seeks 60-day pause on Paramount-Warner Bros merger over withheld records

The Oregon attorney general will ask a court to pause Paramount's $110 billion bid to acquire Warner Bros for 60 days, saying on Tuesday the company withheld records on its lobbying efforts.

While Paramount ​has told the state it will not close the deal before July 16, Attorney General Dan Rayfield said he will ask a court in Multnomah County to order the company to hand over records and delay the deal so ‌the state can ⁠review them.

"We're ⁠not going to let Paramount Skydance play hide the ball so they can rush through their massive merger," Rayfield said ​in a statement. "Oregonians have a real stake in this deal - in our film industry, in our economy, in the ​choices they'll have as consumers."


A Paramount spokesperson said the information Oregon seeks "has nothing to do with whether this transaction complies with Oregon's antitrust laws and is not a legitimate basis to delay a ​plainly lawful, pro-competitive transaction."

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The company has provided the state with documents ⁠relevant to ‌the merger, the spokesperson added.

Oregon is seeking documents regarding "Project Warrior," which was Paramount's internal code name for efforts to obtain regulatory clearance. The state is also asking for ⁠records related to the company's efforts to lobby the Trump administration for support of the merger.

Paramount CEO David Ellison's father, billionaire Oracle co-founder ​Larry Ellison, has cultivated ties with President Donald Trump, and the company has hired former Trump officials.

Oregon is also seeking information on whether Paramount had any role in the U.S. Department of Justice's statement announcing it had cleared the deal.

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While Oregon ordinarily "would afford significant weight" to the DOJ's determination, the state plans to cite a Wall Street Journal report that officials overrode career staff attorneys at the ‌DOJ who were leaning towards a recommendation to challenge the deal, according to documents to be filed in court that were reviewed by Reuters.

The DOJ issued a ​lengthy statement last ​month saying it believed the ⁠deal would "increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers."

The company has said the deal would create a stronger streaming competitor to Netflix and Disney, and benefit creatives ​and consumers.

California, New York and other U.S. states are preparing to sue to block the deal, sources familiar with the matter told Reuters last month. The states have authority to enforce laws against mergers that they believe would unlawfully decrease competition.

Opponents of the deal, including some actors, writers and media workers, have worried that it would hurt jobs.