Oregon AG Wants Pause On Paramount Merger, Hints At Federal Corruption

from the the-last-gasps-of-antitrust-reform dept

I think I’ve extensively explained at this point why the $111 billion merger between Paramount/CBS and Warner Brothers is a gargantuan pile of shit that will indisputably harm labor, consumers, markets, creatives, and potentially even national security. It doesn’t matter the company names; every single major media merger of this type ends badly for everyone but the trust fund brunchlords at the top.

Not only that, every single merger involving this particular company (Time Warner, Warner Brothers) in the last quarter century has resulted in nothing but layoffs, price hikes, shittier product, and a lot of whimpering. And there are ample signs that the Paramount folks are even less competent than past suitors, including the AT&T executives, who quickly got too far out over their skis.

While the Trump DOJ has unsurprisingly rubber stamped Larry Ellison’s clumsy effort to dominate what’s left of U.S. corporate media, states keep hinting at the fact they’ll file a collective antitrust lawsuit.

That’s certainly the case in Oregon, where Attorney General Dan Rayfield is asking for a 60 day pause in deal finalization while his office investigates both the deal — and apparently the Trump cronyism that has helped enable it. Rayfield, for one, accuses Paramount of refusing to adequately respond to state AG requests for information about the deal’s impact:

“We’re not going to let Paramount Skydance play hide the ball so they can rush through their massive merger. 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.”

Rayfield says that Paramount has been particularly cagey when asked for data on its interactions with the Trump administration and Trump DOJ. Including details on a federal government influence campaign Paramount internally calls “project warrior”:

“Paramount has not complied. According to court papers, the company declined to accept service of the request, waited weeks to respond, and ultimately sent objections on the day its documents were due – objections the state dismisses as a baseless tactic to avoid turning over the records. Paramount has told Oregon it does not intend to close the deal before July 16 but has not agreed to hold off any longer while the state’s investigation continues.”

So while the $111 billion deal is abjectly terrible, it’s not quite yet a done deal yet. I’d suspect that a joint antitrust lawsuit featuring the handful of states that still care about such a thing will arrive sometime in the next month or two. While it might not succeed in scuttling the deal, it could extend the timeline in a way that could prove costly for Larry Ellison, David Ellison, and their debt-riddled proposal.

Larry is comically over-leveraged on AI, and should an AI bubble pop coincide in significant regulatory delays for his media domination bid, things could get very interesting. As an aside, I’d like you to notice how when the state lawsuits come, all the Republicans who spent last election season pretending they were suddenly interested in antitrust reform will be absolutely nowhere to be found.

Filed Under: antitrust reform, consolidation, Dan Rayfield, hollywood, larry ellison, media mergers, oregon, regulatory approval