PORTLAND, Ore.: The Oregon Attorney General's Office has withdrawn its court motion seeking to delay Paramount’s proposed $110 billion acquisition of Warner Bros., easing one immediate legal challenge to one of the largest media mergers in recent years.

The state confirmed on Friday that it had dropped its request after Paramount indicated it would not comply with an investigative demand for documents related to the merger review.

In a statement, the Oregon Department of Justice said the company had made clear it would not provide the requested records and that the state would instead consider its next legal steps.

Earlier this week, Oregon Attorney General Dan Rayfield had asked a Multnomah County court to require Paramount to hand over internal documents and postpone completion of the transaction for 60 days while state officials reviewed the deal. Paramount had previously agreed not to finalize the acquisition before July 22 during the state's investigation.

At the center of Oregon's inquiry are documents connected to "Project Warrior," Paramount's internal codename for its efforts to secure regulatory approval for the merger. The state is also seeking records related to the company's lobbying efforts with the Trump administration in support of the acquisition.

Following the withdrawal of the motion, Paramount welcomed the decision, describing the proposed merger as both lawful and pro-competitive.

Despite this development, the transaction continues to face significant regulatory and political scrutiny. Several other U.S. states are reportedly considering legal action to block the acquisition over concerns that combining Paramount and Warner Bros. could reduce competition within the entertainment industry.

The merger would unite two of Hollywood's four major film studios, creating one of the world's largest media and entertainment companies. However, critics, including actors, writers and labor groups, have warned that the consolidation could lead to job cuts, reduced creative competition and greater market concentration.

Regulators and state attorneys general are expected to continue reviewing the transaction in the coming weeks, leaving the future of the landmark media deal uncertain despite Oregon's decision to withdraw its motion.