Oregon AG Seeks Merger Delay, Cites 'Corrupt' DOJ Approval

Oregon Attorney General Ellen Rosenblum's office has filed a motion requesting a 60-day delay in the closing of the Paramount Global and Warner Bros. Discovery merger. The motion, filed in Multnomah County Superior Court, seeks to allow more time for the state's ongoing antitrust investigation into the proposed deal. Judge Eric Dahlin is scheduled to hear arguments on the motion this Monday.

In the filing, Rosenblum's office expressed concerns that the Department of Justice's (DOJ) prior approval of the merger may have been influenced by improper considerations. The state's filing suggests that the DOJ's decision-making process was potentially "corrupt," a strong accusation that could significantly impact the merger's trajectory. This legal challenge from Oregon adds another layer of complexity to the already intricate negotiations between Paramount Global, controlled by Shari Redstone, and Skydance Media, led by David Ellison.

The proposed merger involves Skydance acquiring Paramount Global, with the intention of then combining it with Warner Bros. Discovery. This transaction has faced scrutiny from various parties, including antitrust regulators and shareholders, due to its potential impact on market competition and media consolidation. The Oregon AG's intervention highlights the continued antitrust concerns surrounding the deal, even after initial federal approval.

Paramount Global and Skydance have been engaged in negotiations for months, aiming to finalize a deal that would reshape the media landscape. The Oregon attorney general's office is one of several state entities that have been reviewing the merger for potential antitrust violations. The outcome of Judge Dahlin's hearing on Monday will be crucial in determining whether the merger's closing date will be postponed, providing the state with additional time to complete its investigation and present its findings.