Key facts
- Oregon's Attorney General plans to seek a court order compelling Paramount to comply with merger probe demands.
- The investigation focuses on Paramount's lobbying efforts for its proposed acquisition of Warner Bros. Discovery.
- Paramount has delayed the closure of its $110 billion acquisition of Warner Bros. Discovery until at least July 22.
- Multiple states are preparing a potential lawsuit to block the merger, citing concerns over competition.
- California is spearheading the state-led investigation into the merger's potential impact on competition.
Oregon's Attorney General is preparing to ask a court to compel Paramount Global to comply with demands for documents related to its proposed acquisition of Warner Bros. Discovery. The state is investigating the deal's potential impact on competition and is seeking information about Paramount's efforts to lobby the Trump administration for support.
Paramount intends to close the deal on or immediately after July 16, but has now delayed this until at least July 22. This legal action comes as top lawyers from approximately 10 states, primarily led by Democratic attorneys general with some Republican involvement, are drafting a potential antitrust lawsuit to block the $110 billion merger. California is spearheading this effort, with officials examining how the transaction might affect bargaining power within the entertainment industry.
A spokesperson for Paramount stated that opposing the deal would hinder consumer choice and competition, while benefiting established players like Netflix. The company maintains the merger benefits consumers, creators, and the industry. Paramount shares fell 4.3% and Warner Bros. shares declined 2.8% on Friday amid these developments. The U.S. Department of Justice's review period for the deal has expired, though it can still intervene. The European Commission and UK regulators are also reviewing the transaction.