Larry Ellison Family Faces $9.8 Billion Cost if Warner Bros. Deal Collapses

M&A · Partnership Impact 4
โดย Bloomberg·Read original
Summary · why it matters

Larry Ellison and his family would be on the hook for $9.8 billion if Paramount Skydance Corp.'s deal to buy Warner Bros. Discovery Inc. falls apart. Paramount, run by Larry's son David Ellison, agreed to pay Warner Bros. shareholders a $7 billion termination fee if the deal collapses due to regulatory issues, and in February paid $2.8 billion to Netflix Inc. to get the streaming company to abandon its pursuit of Warner Bros. If the deal does not go through, Larry Ellison and a family trust would reimburse Paramount for both fees by purchasing new Class B shares at $16.02 each, well above the current trading price of about $8 a share. The potential bill is drawing renewed attention after Paramount agreed last week to postpone closing until next June or five days after the resolution of lawsuits seeking to block the merger. Starting October 1, Paramount will also owe Warner Bros. shareholders ticking fees of roughly $650 million a quarter, which would be covered by the Ellisons and their partners if the acquisition is completed.

Impact on stocks 5

Communication Services± Mixed · 3 stocks
Warner Bros Discovery Inc
WBD
▲ PositiveCapitalrelevance

Warner Bros. would receive a $7 billion termination fee if the deal collapses, plus ticking fees, benefiting shareholders.

Netflix Inc
NFLX
▼ NegativeCompetitionrelevance

Netflix received $2.8 billion to abandon its pursuit of Warner Bros., but the deal's potential collapse could revive competition for content.

Semiconductors▲ · 1 stocks
Cloud & Digital Infrastructure▲ · 1 stocks
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