U.S. News
Ellison’s High Stakes Move Shakes Up Hollywood Deal
Clear Facts
- Larry Ellison has personally guaranteed $40.4 billion to support Paramount Skydance’s bid for Warner Bros Discovery’s assets.
- This move addresses concerns from the Warner Bros board regarding Paramount’s financing and Ellison family support.
- Analysts believe the outcome remains uncertain, with Paramount, Warner Bros Discovery, and Netflix still competing for a final deal.
Paramount Skydance received a boost after Oracle co-founder Larry Ellison personally vouched for $40.4 billion to support its effort to secure Hollywood assets from Warner Bros Discovery.
This move responds to concerns about funding stability and brings new weight to Paramount’s offer amid stiff competition from Netflix’s bid.
“I don’t think the revised bid from Paramount Skydance significantly alters the current status quo. I doubt many WBD shareholders that are on the fence or planning to vote ‘no’ were holding out due to issues the revised bid addresses such as a guarantee from Larry Ellison on the funding front.”
“We’re still likely months away from a shareholder vote on the Paramount offer and the planned closing date of the deal agreed with Netflix would be in the second half of 2026. There will likely be many more twists and turns ahead and both Paramount and Netflix have a chance.”
“The WBD Board rejected the last offer because they thought it was speculative and revocable. This one makes the offer irrevocable and directly addresses the Board’s concern.”
“If the board is rational and ethical (a big if), it must accept the offer, since the $108 billion PSKY offered is more than the $83 billion offered by Netflix. We’ll see what the Board does, but PSKY is right to make this offer directly to them.”
“Yes, Paramount has a chance to win, approaching 100%.”
“The updated offer from Paramount doesn’t change the fact that WBD’s executives prefer Netflix. The new offer does make Paramount’s case more compelling to the board and shareholders.”
“But WBD executives will keep fighting to maintain the Netflix deal as long as they can. This battle will be prolonged.”
“Paramount remains in a precarious position and is making a last-ditch effort to avoid being left out in the shadows. It cannot afford to lose out and be a weaker player compared to its stronger rivals.”
“The improved offer is a step in the right direction, but it is unlikely to be enough.”
“The financing from the sovereign wealth funds opens a regulatory box that needs to be checked. Having these players involved will bring another dimension of scrutiny, as well as a big diplomatic question – how far will using money from Middle Eastern sovereign wealth funds bring them into partnership with one America’s cultural touchstones?”
“Paramount has claimed that any influence from the funds will be neutralised due to their lack of voting rights, but there are other questions at play which make the picture far murkier.”
“Notably, the access of these funds, as key stakeholders, to WBD and Paramount’s data, as well as the wider diplomatic implications of foreign bodies having a vested stake in such a huge entity in U.S. media production and consumption.”
This development underscores ongoing concerns about foreign influence and financial stability in American media deals.
Conservatives watching this deal continue to stress the importance of maintaining American values and ownership amid shifting global interests.
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