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BREAKING: U.S. District Judge Araceli Martínez-Olguín (Biden appointed) has temporarily HALTED Paramount Skydance’s planned $110B acquisition of Warner Bros. Discovery. Fox News’ Sandra Smith: “It all comes after 12 [Democratic Attorney Generals] sued to block that merger, arguing it would get rid of competition in Hollywood and lead to...

32,782 Aufrufe • vor 21 Tagen •via X (Twitter)

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🇺🇸 LARRY ELLISON’S SON GOES ALL-IN: $30-A-SHARE HOSTILE BID FOR WARNER BROS. DISCOVERY David Ellison just detonated Hollywood’s biggest power play of the decade. Skydance and Paramount CEO went live on CNBC to announce a $30-per-share all-cash hostile tender offer for Warner Bros. Discovery — a $41 billion equity deal valued at $54 billion enterprise-wide. He told CNBC’s Squawk Box: “We’re really here to finish what we started… Our offer is $30 a share, all cash, backed by the Ellison family, Redbird Capital, Citibank, Bank of America, and Apollo. Cash is still king.” Ellison’s move comes just three days after Netflix’s $82.7 billion cash-and-stock bid for WBD’s studios, HBO, and streaming platforms. His pitch: simplicity and certainty. He’s offering $17.6 billion more in cash than Netflix, faster regulatory clearance, and what he calls a “pro-consumer, pro-creative, pro-competition” deal. The Netflix offer, partly stock-based and excluding WBD’s global networks like CNN and HBO International, raised antitrust red flags by creating a 400-million-subscriber superstreamer. Ellison argued that combining Skydance, Paramount, and WBD would instead balance the market,“strong but not monopolistic.” Hollywood talent is reportedly cheering Ellison’s move, calling it a stand for theaters and creativity after Netflix chief Ted Sarandos’ comment that “theatrical releases aren’t essential.” Bottom line: Ellison’s “cash is king” strategy is a masterclass in corporate brinkmanship. If successful, it could mark the rebirth of studio-driven Hollywood... one where storytellers, not algorithms, take the lead. Sources: CNBC, Reuters; Bloomberg, Variety, Hollywood Reporter

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Larry Ellison just bet his own company to buy his son a Hollywood empire. And a judge in Oakland could FREEZE the entire thing this afternoon. The deal is Paramount Skydance buying Warner Bros Discovery for about $110 billion, run by David Ellison, Larry's son. It would put two film studios, two streaming platforms, and two news organizations under one family. The problem: Warner's board did not want Paramount. It preferred a Netflix offer and called Paramount's financing illusory. So Larry Ellison put his own money behind his son. He gave an irrevocable guarantee covering $40.4 billion of the equity financing, and promised not to revoke the family trust or move its assets while the deal stayed pending. Paramount then published records to prove the trust holds 1.16 billion Oracle shares. Warner's board reversed and David Ellison won the biggest media merger in Hollywood history using his father's balance sheet as the proof of funds. That was the moment the two companies became one financial object. Because the guarantee is not cash. It is Oracle stock, and Oracle stock has been falling all year... Ellison owns 40.6% of Oracle. The company's crash has erased roughly $213 billion from his fortune and cut the share price by more than half. And Oracle's own filing shows 346 million of his shares were ALREADY pledged against personal debts as of September. He borrowed against the stock, then promised the same stock as backing for a $110 billion acquisition, while the stock was on its way down. Ellison turned Oracle into a hyperscaler by loading it with debt to chase AI data centers. Oracle became a major supplier of AI computing power to China. Job cuts have already been reported. In January, investors who bought $18 billion of Oracle senior notes filed a proposed class action in Manhattan against Ellison, senior executives, and the underwriting banks, over borrowing plans tied to AI that they say were not disclosed. So the debt that built the empire is now being litigated by the people who financed it, while the equity behind the guarantee shrinks. Then the states arrived: On July 13 a coalition of 12 attorneys general led by California sued to block the merger under Section 7 of the Clayton Act. On July 20 Judge Araceli Martinez-Olguin issued a 14-day restraining order stopping the deal from closing, writing that the states had shown serious questions going to the merits remain. Paramount says the suit misrepresents competition in an entertainment industry now crowded with streamers. Today at 3pm in Oakland, the same judge hears the states' motion for a preliminary injunction. That is the hearing that matters, because when a judge grants an injunction, companies frequently walk away from the deal rather than fight through a full trial. When a judge denies one, they close within days. Delay is costing Paramount roughly $650 million a quarter, and the company has agreed to keep the deal open as late as June 1, 2027. So one family is holding a $110 billion acquisition open for possibly another 10 months, backed by shares in a company that is spending borrowed money faster than the AI revenue arrives. Larry Ellison spent his career selling databases to governments and betting the company on the next platform shift. He has been right almost every time. This time he pledged the proof of his own success to buy his son a studio, and a courtroom in Oakland decides if it freezes everything or not.

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73,319 Aufrufe • vor 7 Tagen