Oregon AG drops bid to block Paramount, Warner Bros. merger
▼ Summary
– Oregon Attorney General Dan Rayfield withdrew his civil investigative demand for documents from Paramount related to its takeover of Warner Bros. Discovery.
– Rayfield had previously sought a 60-day delay of the deal to review documents, but Paramount refused to comply with the demand.
– The AG’s communications director stated they withdrew to avoid wasting state resources on Paramount’s “games” and will consider next steps.
– Rayfield was interested in documents about Paramount’s lobbying efforts, codenamed “Project Warrior,” and the company’s ties to Trump supporters David and Larry Ellison.
– Other jurisdictions, including California, New York, and the UK, are considering blocking the merger on antitrust grounds, and Hollywood has opposed it.
Oregon Attorney General Dan Rayfield has officially withdrawn his request to block the Paramount and Warner Bros. Discovery merger, backing down from a legal fight that sought to delay the deal by 60 days. Rayfield initially asked a state circuit court judge to pause the transaction while his office reviewed documents tied to Paramount’s takeover. According to reports from Deadline and Variety, he has now dropped that civil investigative demand for the records.
Paramount expressed relief at the decision, but the Oregon AG’s office made clear it was hardly satisfied. Jenny Hansson, communications director for Rayfield, told Deadline that “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. We’ve withdrawn the motion to consider our next steps.”
At the heart of Rayfield’s inquiry were documents concerning Paramount’s lobbying efforts, internally referred to as “Project Warrior.” Paramount is controlled by David and Larry Ellison, prominent supporters of Donald Trump who maintain a close relationship with the White House. During the proceedings, the President publicly warned that Netflix, Paramount’s main competitor for Warner Bros. Discovery, would “pay the consequences” if it failed to remove Trump critic Susan Rice from its board.
Although Oregon’s attempt to halt the merger has stalled, other regulators are stepping up. Authorities in California, New York, and even the United Kingdom are reportedly considering antitrust actions to block the deal. Hollywood has also voiced strong opposition, adding pressure on the proposed union of two major entertainment giants.
(Source: The Verge)