Prosecutor will ask American courts to postpone Paramount's agreement with Warner Bros for 60 days

Illustrative photo shows logos of Paramount and Warner Bros
Reuters
Oregon's attorney general will ask the court to suspend Paramount's $110 billion proposal to acquire Warner Bros. for 60 days, saying on Tuesday (7) that the company withheld documents about its lobbying efforts.
Although Paramount has informed the state that it will not complete the transaction before July 16, Attorney General Dan Rayfield said he will ask a Multnomah County court to order the documents to be turned over and delay the completion of the deal so the state can review them.
"We will not allow Paramount Skydance to hide its game to accelerate this massive merger," Rayfield said in a statement. "Oregonians have a direct interest in this deal - in our film industry, in our economy and in the choices they will have as consumers."
A Paramount spokesperson said that the information requested by Oregon "has no bearing on whether or not this transaction complies with the state's antitrust laws and does not constitute a legitimate basis for delaying a clearly legal and pro-competitive transaction."
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According to the spokesperson, the company has already provided the state with documents relevant to its review of the merger.
Oregon seeks documents related to "Project Warrior," the internal name used by Paramount for efforts to gain regulatory approval for the deal. The state also wants records about the company's attempts to lobby the Trump administration in support of the merger.
Paramount CEO David Ellison's father, billionaire Larry Ellison, co-founder of Oracle, maintains close ties with President Donald Trump, and the company has hired former members of the Trump administration.
The state also requests information on whether Paramount had any role in drafting the U.S. Department of Justice statement announcing that it had approved the transaction.
Although Oregon typically gives "weight significant" to the Justice Department's conclusions, the state intends to cite a *Wall Street Journal* report that the agency's political authorities contradicted career lawyers, who would be inclined to recommend a challenge to the operation. The information is contained in documents that will be presented to the Court and were analyzed by Reuters.
Last month, the Department of Justice released a detailed statement stating that it believes that the agreement "will increase competition throughout the media and entertainment ecosystem, bringing benefits to American consumers and workers."
See the numbers from the merger between Warner and Paramount
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Paramount claims that the merger will create a stronger competitor for Netflix and Disney in the streaming market, in addition to benefiting professionals in the creative and consumers.
California, New York and other American states are preparing legal actions to try to block the operation, sources familiar with the matter told Reuters last month. States have the authority to enforce laws against mergers that they consider illegally reducing competition.
Opponents of the deal, including actors, screenwriters and media workers, say the transaction could result in job losses.

Source: G1

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