SAN JOSE (United States): Tech billionaire Larry Ellison is attempting to remove a major obstacle to his family’s bid for Hollywood giant Warner Bros Discovery, German Press Agency (dpa) reported.
The co-founder of software company Oracle provided a personal guarantee for a US$40.4 billion portion of the more than US$100 billion bid on Monday.
Warner Bros Discovery had rejected the offer, citing, among other things, that the guarantee provided by the Ellison family was not strong enough.
Warner decided instead to accept Netflix’s offer for the studio and streaming business.
The Ellisons are now taking their offer directly to Warner’s shareholders. Just a few months ago, the family acquired Warner’s competitor Paramount, through which the Warner bid is being made.
Larry Ellison’s son, David Ellison, is Paramount’s chief executive. They aim to take over Warner Bros Discovery completely, including its TV channels such as CNN.
Larry Ellison ranks fifth on Bloomberg’s list of billionaires, with an estimated fortune of US$246 billion. Paramount’s bid totals US$108.4 billion. A large part of this is to be financed with loans.
Netflix is offering just under US$83 billion for the studio and streaming business. A crucial question for shareholders will therefore be how the TV stations are valued for the future.
The takeover battle also carries political implications, particularly because it involves CNN. United States (US) President Donald Trump has demanded that any deal involving Warner include a change in ownership of the news network, which has frequently been critical of him.
Larry Ellison is a known Trump supporter. Following Paramount’s acquisition, its CBS newsroom underwent restructuring.
The newly appointed editor-in-chief, Bari Weiss, has drawn attention for offering a platform to Erika Kirk, the widow of right-wing activist Charlie Kirk, who was killed by an assassin earlier this year. – BERNAMA-dpa
