Oregon has withdrawn its court request to delay Paramount’s proposed $110 billion acquisition of Warner Bros., marking the latest development in a high-profile antitrust battle surrounding one of the largest media consolidation efforts in recent years.
The Oregon Department of Justice announced Friday that it had pulled its motion after accusing Paramount of refusing to comply with the state’s investigative demands related to the proposed transaction.
“Paramount made it clear that they weren’t going to comply with the investigative demand, and that they think they’re above the law,” the department said in a statement to Reuters. “We’re not going to let them waste Oregonians’ resources on these games.”
State officials said they withdrew the motion while evaluating their next legal options.
The decision follows a filing earlier this week by Oregon Attorney General Dan Rayfield’s office in Multnomah County Circuit Court seeking an order requiring Paramount to produce internal records and postpone completion of the merger for 60 days.
According to the attorney general’s office, Paramount had previously agreed not to finalize the acquisition before July 22 while Oregon reviewed the transaction.
At the center of the state’s inquiry is a collection of internal company documents connected to “Project Warrior,” the code name reportedly used by Paramount during its campaign to secure regulatory approval for the merger.
Oregon is also seeking records concerning Paramount’s communications and lobbying efforts directed at the Trump administration in support of the proposed acquisition.
The investigation reflects growing scrutiny from state authorities over major corporate mergers, particularly those involving industries with broad economic and cultural influence such as entertainment and media.
Despite the state’s accusations, Paramount welcomed the withdrawal of the court motion.
“We are pleased that the Oregon Attorney General has withdrawn its motion to delay this transaction,” a company spokesperson said in a statement to Reuters.
The spokesperson described the proposed merger as both lawful and pro-competitive, maintaining that the transaction complies with applicable competition laws.
The proposed acquisition would unite two of Hollywood’s four major film studios under a single corporate structure, creating one of the largest entertainment companies in the world.
Supporters argue the merger would strengthen Paramount’s ability to compete against rapidly expanding global streaming platforms and technology companies that have reshaped the media landscape over the past decade.
Critics, however, contend that further consolidation could reduce competition, eliminate jobs and weaken opportunities for creative professionals throughout the entertainment industry.
Actors, writers and other Hollywood workers have voiced concerns that combining the two companies could lead to significant cost-cutting measures, including layoffs, production reductions and consolidation of studio operations.
The transaction has also attracted the attention of regulators and attorneys general beyond Oregon.
Reuters previously reported that several other U.S. states are reviewing the proposed acquisition and could move as early as next week to challenge the merger in court over antitrust concerns.
Such legal action would add another layer of uncertainty to a transaction already facing extensive regulatory examination because of its size and potential impact on competition within the film, television and streaming businesses.
State officials have not indicated what legal steps Oregon may pursue following the withdrawal of its motion, but Friday’s announcement suggests the investigation itself remains active.
For Paramount, the withdrawal removes an immediate procedural obstacle that could have delayed completion of the acquisition. However, ongoing investigations by Oregon and potentially other states mean the company may continue to face legal and regulatory challenges before the deal can be finalized.
As scrutiny intensifies, the proposed merger remains one of the most closely watched corporate transactions in the U.S. media industry, with regulators, investors and entertainment professionals closely monitoring whether it ultimately receives the approvals needed to proceed.
