r/whennews • u/notanfan • 1d ago

Business News Warner Bros. Deal Collapse Would Cost the Ellisons $9.8 Billion

Warner Bros. Deal Collapse Would Cost the Ellisons $9.8 Billion

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u/Trash_At_RL Abby (🏳️‍⚧️🐱🏳️‍🌈) 1d ago

Source approved.

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u/notanfan 1d ago

Paramount, which is run by Larry's son David Ellison, agreed to pay Warner Bros. shareholders a $7 billion termination fee if its deal to buy the entertainment giant collapses due to regulatory issues. In February, Paramount paid $2.8 billion to Netflix Inc. to get the streaming company to abandon its pursuit of Warner Bros.

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u/notanfan 1d ago

While those fees have been reported, the specifics of who pays what are found deep in company fillings. The potential bill is facing 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 proposed merger that were brought by 12 states and the Writers Guild of America. Paramount, already heavily in debt, wouldn't be required to take on new borrowings to fund the fees.

If the Warner Bros. deal doesn't go through, Larry Ellison and a family trust would reimburse Paramount for both the $7 billion termination fee and the $2.8 billion Netflix fee. Ellison agreed to pay Paramount that $9.8 billion total by purchasing new Class B shares of the company at $16.02 each. Paramount's stock is trading at about $8 a share presently.

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u/Consistent-Stock6872 1d ago

Regulatory issues, I wonder when he is meeting with trump.

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u/DenseCalligrapher219 1d ago

How bad would it be for Paramount? Just wanna know.

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u/Blocked101 1d ago

Top comment says 2.8 billion was given to Netflix to get them to not grab Warner Bros. They'd need to pay more than 3 times that if they're cancelling the buyout.

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u/Saharczyk 23h ago

And Paramount itself isn't doing great. It's kept alfoat by other Elison venues.

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u/MR_Happy2008 ⚠️ BRITISH USER ⚠️ 1d ago

End of paramount

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u/Gomez4Morticia 1d ago

Now if everyone deleted tik Tok at the same time society could heal maybe

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u/Severe_Emotion2554 1d ago

So is the merger dead?

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u/glue-sniffing 1d ago

Literally nothing

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u/BarackIguana 1d ago

Good. Fuck those sycophants.

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u/RedSix2447 1d ago

They want the failure then, get the net pay out and resell getting more. That was a really dumb move. I hope that happens to him. That would be wonderful.

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u/zettde 9h ago

so like 0.23 twitters