Logos of Paramount and Warner Bros. Discovery. [Reuters]
Logos of Paramount and Warner Bros. Discovery. [Reuters]

A state government has moved to put the brakes on the blockbuster merger between Paramount Skydance and Warner Bros. Discovery — one of the most closely watched deals in the global film and media industry.

Oregon's attorney general office asked a Multnomah County court Wednesday for a 60-day stay to investigate whether the merger between the two companies violates antitrust law, Reuters reported.

In response, Paramount told the court it would not finalize the merger before July 22 — six days later than the July 16 deadline the company had originally set.

The Justice Department approved the merger on June 12 and issued an unusual statement saying the deal would have a positive effect on competition in the streaming market.

Paramount CEO David Ellison is the son of Larry Ellison, the Oracle founder and a longtime friend of President Donald Trump. The connection has prompted allegations that the Trump administration did not rigorously scrutinize Paramount for potential antitrust violations.

After the federal government swiftly approved the merger, California, New York and several other states were reported to be preparing lawsuits over the deal in addition to Oregon. Reuters, citing sources, said related litigation could be filed as early as next week.

If a court orders a halt to the merger process while litigation proceeds, deals can be delayed by months. In that scenario, Paramount could be left saddled with $80 billion in debt, Reuters reported.


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