Paramount faces pushback in Warner Bros. Discovery takeover bid

M&A · Partnership

โดย Yahoo Finance·

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Summary · why it matters

Paramount Skydance is facing pushback from a collection of US attorneys general in its proposed acquisition of rival Warner Bros. Discovery. Media analyst Evan Shapiro says the deal will remain in limbo unless Paramount backs out, and that Larry Ellison is personally backing $40 billion dollars of this $111 billion dollar deal. Shapiro notes Oracle stock has dropped 60% since bidding began, and if Oracle's debt is rated junk, Ellison's personal stock gets locked up, putting the Ellisons in financial hot water. He adds that Netflix, Apple, or a spun-out NBC could swoop in if Paramount walks away, which he thinks is increasingly likely given a $7 billion breakup fee.

Paramount Skydance Corporation Class B Common Stock ▼

Warner Bros Discovery Inc ±

Oracle Corporation ▼

Impact on stocks 8

Communication Services▼ · 3 stocks

Paramount Skydance Corporation Class B Common Stock

▼ NegativeRegulationrelevance

US attorneys general pushback threatens the proposed acquisition, and deal may fall through with $7B breakup fee.

Warner Bros Discovery Inc

± MixedCapitalrelevance

As the target of the acquisition, the deal's uncertainty creates mixed impact; potential for other buyers if deal fails.

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Artificial Intelligence▲ · 3 stocks

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NVIDIA Corporation

Mentioned

Cloud & Digital Infrastructure▼ · 2 stocks

Oracle Corporation

▼ NegativeCapitalrelevance

Oracle stock has dropped 60% since bidding began, and debt rating concerns could lock up Ellison's stock.

Mentioned