Larry Ellison Paramount Skydance Warner Bros Discovery hearing
by Tim Official: Larry Ellison
So Larry Ellison is backing his son's $110 billion media empire with his own Oracle shares. The judge in Oakland could halt it all today. Warner's board initially balked, calling the financing illusory, but Ellison's $40.4 billion irrevocable guarantee changed minds. The problem? Oracle stock has tanked, erasing $213 billion from his fortune, and he's already pledged 346 million shares against personal debts. Investors who bought $18 billion in senior notes are suing over undisclosed AI borrowing. Twelve states, led by California, are challenging the merger under Section 7 of the Clayton Act. Judge Araceli Martinez-Olguin already issued a 14-day restraining order. The hearing today at 3pm could freeze the deal, and delay costs $650 million a quarter. They're willing to wait until June 1, 2027. tbh, this feels like a house of cards built on a family trust holding 1.16 billion Oracle shares. Probably not the best sign when your own stock is the collateral.
Transcript (en)
We're here, I'm here, to announce a lawsuit that I've filed and that a coalition of 12 states have filed challenging the proposed merger of Paramount, Skydance and Warner Brothers Discovery and asking the court to block the merger from moving forward. This $110 billion proposed merger, the largest merger in Hollywood history, would extinguish competition. It would result in higher prices, lower content quality, and fewer movies and TV shows. As our complaint makes clear, this deal is illegal under the Clayton Act. That is a law that has been on the books for over 100 years. It prevents mergers that may substantially lessen competition or tend to create a monopoly.
