LARRY ELLISON’S $9.8 BILLION HOLLYWOOD GAMBLE
Larry Ellison could personally absorb a staggering $9.8 billion loss if Paramount Skydance’s acquisition of Warner Bros. Discovery collapses.
Paramount agreed to pay Warner Bros. a $7 billion termination fee if regulators prevent the merger. The company has also already paid $2.8 billion to Netflix to abandon its competing pursuit of Warner. Ellison and a family trust have guaranteed reimbursement of both amounts through the purchase of new Paramount shares.
The stakes are rising as the closing deadline has been pushed to June 2027, amid lawsuits filed by 12 US states and the Writers Guild of America. Starting October 1, Paramount may also owe Warner shareholders roughly $650 million per quarter in additional delay-related payments if the transaction eventually succeeds.
The guarantee places Ellison’s personal fortune behind his son David Ellison’s ambition to build a new entertainment empire. But the Oracle founder is already under pressure: his wealth has reportedly fallen 31% this year to $163 billion, as investors question Oracle’s massive spending on AI infrastructure and data centers.
Hollywood’s biggest takeover battle is becoming one of the most expensive family bets in corporate history.
Larry Ellison could personally absorb a staggering $9.8 billion loss if Paramount Skydance’s acquisition of Warner Bros. Discovery collapses.
Paramount agreed to pay Warner Bros. a $7 billion termination fee if regulators prevent the merger. The company has also already paid $2.8 billion to Netflix to abandon its competing pursuit of Warner. Ellison and a family trust have guaranteed reimbursement of both amounts through the purchase of new Paramount shares.
The stakes are rising as the closing deadline has been pushed to June 2027, amid lawsuits filed by 12 US states and the Writers Guild of America. Starting October 1, Paramount may also owe Warner shareholders roughly $650 million per quarter in additional delay-related payments if the transaction eventually succeeds.
The guarantee places Ellison’s personal fortune behind his son David Ellison’s ambition to build a new entertainment empire. But the Oracle founder is already under pressure: his wealth has reportedly fallen 31% this year to $163 billion, as investors question Oracle’s massive spending on AI infrastructure and data centers.
Hollywood’s biggest takeover battle is becoming one of the most expensive family bets in corporate history.