Paramount filed a response to Oregon Attorney General Dan Rayfield this week, insisting the state’s motion to attempt to block the $110 billion merger with Warner Bros. Discovery is not based upon matters of antitrust law.
In a Wednesday filing, Paramount Skydance claimed the Ex Parte Motion for Order to Show Cause and Application for Statutory Injunction should be denied, since the Oregon Department of Justice is essentially seeking a discovery request, as opposed to outright filing an antitrust complaint, for which they lack “clear and convincing proof of irreparable harm.”
The company also noted that it has presented over 822,000 documents related to the state’s existing investigation, in addition to a further 1.2 million documents provided by WBD.
“The information the Oregon Department of Justice is seeking has nothing to do with whether this transaction complies with Oregon’s antitrust laws and is not a legitimate basis to delay a plainly lawful, pro-competitive transaction. We have provided the attorney general’s office with all relevant documents it requested for the merger,” a Paramount spokesperson shared in a prior statement. “Antitrust authorities around the world, including in Australia, Canada, China and the United States, have carefully reviewed this transaction, clearing it or concluding that it does not violate any competition laws.”
“That regulatory record underscores what the facts, the law and the economics make clear: this transaction will create a stronger challenger to dominant global streaming and technology platforms, expand consumer choice, increase investment in premium content and theatrical distribution, and create more opportunities for creators and workers,” they continued. “Any attempt to delay this transaction would undermine those benefits and protect entrenched incumbents from the stronger competition this merger will create. We will vigorously defend against such efforts in court.”
The update comes after Oregon AG Rayfield announced his intention to seek a court order requiring the company to turn over records tied to the state’s lobbying investigation and, in turn, delaying the global deal’s closing for 60 days.
“We’re not going to let Paramount Skydance play hide the ball so they can rush through their massive merger,” Rayfield said in a Tuesday statement. “Oregonians have a real stake in this deal – in our film industry, in our economy, in the choices they’ll have as consumers. Paramount had every opportunity to hand over records and answer a few basic questions. Instead, it is trying to run out the clock and evade scrutiny. We’re asking the court to make sure Oregonians get the answers they’re owed before this deal closes, not after.”
The ODOJ then stated they would file the accompanying paperwork on Wednesday, further alleging Paramount’s reluctance to cooperate. Paramount, however, has again denied this version of events.
Regardless, the Paramount-WBD merger will not close before July 16, while the European Commission has extended the deadline of its Phase 1 investigation from July 7 to July 22.