Oregon attorney general launches legal attack on the Paramount/Warner Bros. merger

An Oregon judge is being asked to put a 60-day hold on the $111 billion sale so investigators can look into whether federal approvals were the result of a "corrupt bargain."

Oregon attorney general launches legal attack on the Paramount/Warner Bros. merger

Regulators at both state and national levels have been giving Paramount’s attempted purchase of its old rival Warner Bros. side-eye for months at this point. (Not the United States Department Of Justice, mind you; there, approvals floated along happy as a cloud.) And while the deal is currently gearing up for scrutiny from international regulators—specifically over in Europe, where it’s currently facing a July 22 review by the European Commission of the EU—a gaggle of American state attorneys general have all been congregating around the purchase lately, trying to figure out if there’s anything they can do, vis-à-vis their individual state antitrust laws, to block it. Now, one of that crew has finally stepped up and made the first effort to rassle the giant-serpent-messily-sucking-down-another-serpent, as Variety reports that the Oregon Attorney General office has now asked a judge to impose a 60-day block on the sale.

Specifically, AG Dan Rayfield and his team have stated that they aren’t so much interested in looking into the purchase—which started moving forward late last year, after Paramount out-maneuvered Netflix for the acquisition at least in part on promises it would have an easier time getting past regulators—as CEO David Ellison and his team’s efforts to curry favor with those same regulators. Rayfield went so far as to suggest that the approval may have been “the product of a corrupt bargain,” demanding that Paramount turn over documents related to its regulator lobbying strategies, which were apparently codenamed “Project Warrior” in what we can only assume was a successful effort to give Pete Hegseth a boner. Rayfield and his team are also seeking any evidence that Paramount had any hand in the DOJ issuing a somewhat unusual statement last month explaining why it wasn’t regulating the merger, which included glowing language about how the sale would “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”

Paramount’s counterargument has, essentially, boiled down to “Stop hassling us,” arguing that their lobbying strategies don’t have any direct impact on whether the sale violates state antitrust laws, and suggesting that sending Rayfield’s office the documents they’re asking for would be more trouble than it’s worth. In any case, the request is now before Multnomah County Superior Court Judge Eric Dahlin, who’s expected to hold a hearing on the matter on Monday; regardless of how Dahlin ends up ruling, it’ll be interesting to see if the Oregon AG’s actions will spur similar efforts from him contemporaries in New York and California, as the mid-July expected closing date for the sale looms.

 
Join the discussion...
Keep scrolling for more great stories.