Larry Ellison's Family Tie Shapes Paramount Skydance Takeover of Warner Bros. Discovery — What It Means for CNN

Warner Bros. Discovery has formally signed an agreement to be acquired by Paramount Skydance, a move that immediately reshapes ownership of assets including and HBO Max. The deal comes amid high-stakes bidding activity and public scrutiny, and it spotlights the role of larry ellison through his son’s leadership of the buying group.

Larry Ellison connection and leadership at Paramount Skydance

Paramount Skydance is led by David Ellison, 43, who is the son of Silicon Valley billionaire Larry Ellison, a close ally of President Donald Trump. David Ellison’s Skydance Media completed an $8 billion acquisition of Paramount Global last year, and he continued to pursue Warner Bros. Discovery assets even after WBD signed a $72 billion deal with Netflix.

Deal terms and financial scale

Paramount Skydance’s offer of $31 a share values Warner Bros. Discovery at roughly $77 billion. Factoring in WBD’s debt load, the takeover bid rises to a total of more than $110 billion. The offer includes the Warner Bros. film studio, the HBO Max streaming platform and a portfolio of cable channels, including. Netflix’s earlier proposal did not include the cable assets.

• $31 per share offer, valuing WBD at roughly $77 billion
• Total enterprise cost, including debt: more than $110 billion
• Included assets: Warner Bros. studio, HBO Max, cable channels including

Board sign-off, shareholder vote and deal protections

The transaction was unanimously approved by the boards of directors of both companies. It remains subject to customary closing conditions, including regulatory clearances and approval by Warner Bros. Discovery shareholders; a shareholder vote is expected in the early spring of 2026. If the transaction has not closed by Sept. 30, WBD shareholders will receive a $0. 25 a share ticking fee for each quarter that closing is delayed.

Paramount Skydance’s proposal also includes a $7 billion reverse termination fee should regulators block the deal, a protection that highlights the parties’ awareness of anticipated scrutiny. Democrats in Congress have vowed to scrutinize the transaction, adding a political dimension to the regulatory path ahead.

Competitive drama, Netflix exit and fees

The agreement was finalized just a day after Netflix abruptly walked away from the bidding war for WBD’s studio and streaming assets, ending an intense corporate contest. Ellison had raised his offer from $30 to $31 a share on Thursday, after WBD rejected several prior offers from Paramount Skydance.

Netflix chose not to match the latest bid; Netflix co-CEOs Ted Sarandos and Greg Peters characterized the deal as always being a "nice to have" at the right price, not a "must have" at any price. Paramount Skydance paid Netflix a $2. 8 billion termination fee, disclosed in a Securities and Exchange Commission filing.

Content libraries, cultural stakes and executive reactions

If approved, the merger would unite two storied Hollywood film studios and bring together a sprawling library of intellectual property that ranges from The Godfather and SpongeBob SquarePants on the Paramount side to Casablanca and Batman on the Warner Bros. Discovery side. That combined catalogue establishes major content and distribution leverage across theatrical, streaming and cable businesses.

David Zaslav, president and chief executive of Warner Bros. Discovery, said he was very pleased with the outcome achieved for shareholders and the entertainment industry, adding that the company’s guiding principle was to maximize asset value while delivering as much certainty as possible for investors. He said WBD looks forward to working with Paramount to complete the transaction.

Next steps and open questions

Regulatory approval remains the major obstacle, and congressional scrutiny is anticipated. Paramount Skydance has not yet provided specifics on how its properties would be combined with those of Warner Bros. Discovery. It remains unclear in the provided context.

Key milestones to watch include the early spring 2026 shareholder vote, regulatory reviews, potential political pushback, and the timeline for satisfying closing conditions — any of which could reshape or delay completion of this consequential media merger.