Paramount Celebrates Withdrawal of Oregon AG’s Demands
Oregon’s Attorney General Dan Rayfield has dropped a civil investigative demand for Paramount to turn over records related to its efforts to secure federal approval for its merger with Warner Bros. Discovery. This significant development has been met with a statement from Paramount, expressing their relief at the withdrawal of the AG’s motion to delay the proposed acquisition.
A hearing had been scheduled for Monday in Multnomah County Circuit Court to address the AG’s request for Paramount to turn over materials and to delay the closing of its proposed acquisition of Warner Bros. Discovery by 60 days. However, with the withdrawal of the AG’s demands, the hearing has been rendered unnecessary.
In a statement, Paramount said, ‘We are pleased that the Oregon Attorney General has withdrawn its motion to delay this transaction. It was the right decision and avoids an unwarranted effort to delay a lawful, pro-competitive merger.’
Paramount’s spokesperson emphasized that the regulatory record supports the transaction, citing clearance from antitrust authorities around the world. They argue that the merger will create a stronger challenger to dominant global streaming and technology platforms, expand consumer choice, increase investment in premium content, and create more opportunities for creators and workers.
However, California Attorney General Rob Bonta and other state attorneys general are said to be considering a legal challenge to the transaction. Oregon’s AG, Dan Rayfield, has stated that Paramount made it clear they wouldn’t comply with the investigative demand, and that they believe they are ‘above the law.’
The AG’s office has withdrawn the motion to consider their next steps, stating, ‘We’re not going to let them waste Oregonians’ resources on these games.’
The Oregon AG had sought Paramount records of lobbying of federal officials, as well as its role in a statement that the DOJ released in support of the transaction. The AG also sought documents related to the formulation and execution of lobbying strategies aimed at obtaining regulatory approval of the proposed merger, which was internally named ‘Project Warrior.’
In a court filing, Paramount objected to the document requests, arguing that they impose ‘burdens and demands which are disproportionate’ to the Oregon investigation and are ‘of such marginal relevance that the value of any materials sought is outweighed by the burden imposed on Paramount in having to provide such information.’
Paramount’s legal team argued that lobbying activities and related communications are ‘wholly irrelevant’ to whether the proposed acquisition violates Oregon’s antitrust laws.
The AG’s office had stated that they would consider their next steps, but with the withdrawal of the motion, it remains unclear what actions will be taken next.
The proposed acquisition of Warner Bros. Discovery by Paramount is a significant deal that has been met with both support and opposition from various stakeholders. As the situation continues to unfold, it is essential to stay informed about the developments and their implications.
