Oregon A.G. Seeks Delay of Paramount-Warner Bros. Merger, Suggests DOJ Approval Was ‘Corrupt’

The Oregon attorney general’s office has asked a judge to grant a 60-day delay on the closing of the Paramount-Warner Bros. merger, as it continues to investigate whether the deal violates antitrust law.

Judge Eric Dahlin, of Multnomah County Superior Court, will hold a hearing on the motion on Monday. Lawyers for Paramount Skydance have informed the court that they do not intend to close the Warner Bros. deal before July 22.

Though the Department of Justice gave its blessing to the merger last month, a coalition of states — including California and New York — continue to investigate whether it violates antitrust law. The DOJ issued an unusual statement explaining why it chose not to try to block the merger, which argued that the deal will “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”

The states had previously been told that the deal would not close before July 16, setting up a de facto deadline for the states to seek an injunction.

Dan Rayfield, the state’s A.G., has asked Paramount Skydance to turn over records related to its lobbying of the White House and the DOJ, suggesting in a court filing that the approval may have been “the product of a corrupt bargain.”

“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, saying that any such lobbying is irrelevant to whether the merger violates state antitrust law.

Rayfield said in a press statement on Tuesday that Paramount has been dodging his office’s investigatory demands.

“We’re not going to let Paramount Skydance play hide the ball so they can rush through their massive merger,” he 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.”

A hearing on the state’s motion was initially set to be held in front of Presiding Judge Judith Matarazzo at 1:30 p.m. on Wednesday, but she informed the parties she did not have time to consider it.