Larry Ellison’s son David Ellison leads Paramount Skydance takeover as larry ellison is tied to deal
Paramount Skydance has formally agreed to acquire Warner Bros. Discovery, a move that puts the family of Silicon Valley billionaire larry ellison at the center of one of the industry’s biggest consolidation plays. The deal folds studios, streaming and cable assets into a single transaction that still faces regulatory review and a shareholder vote.
Terms: $31 a share, $77 billion valuation and a broader $110 billion takeover figure
Paramount Skydance’s offer of $31 a share values Warner Bros. Discovery at roughly $77 billion and covers the Warner Bros. film studio, the HBO Max streaming platform and a portfolio of cable channels that includes. Factoring in Warner Bros. Discovery’s debt load, the takeover bid comes to a total of more than $110 billion. Netflix’s earlier proposal did not include the cable assets that are part of this agreement.
Board sign-off, shareholder timetable and closing conditions
The transaction was unanimously approved by the boards of directors of both companies, the companies said in a joint news release. The deal is subject to customary closing conditions, including regulatory clearances and approval by Warner Bros. Discovery shareholders, with a vote expected in the early spring of 2026. If the transaction has not closed by Sept. 30, Warner Bros. Discovery shareholders will receive a $0. 25 a share "ticking fee" for each quarter.
Regulatory scrutiny, reverse fee and congressional attention
The takeover still needs regulatory approval, and Democrats in Congress have vowed to scrutinize the transaction. Paramount Skydance’s proposal includes a $7 billion reverse termination fee if regulators block the deal, underscoring both sides’ preparation for a prolonged review process.
Larry Ellison connection and David Ellison’s role in the bid
Paramount Skydance is led by David Ellison, the son of Silicon Valley billionaire Larry Ellison, a close ally of President Donald Trump. David Ellison’s Skydance Media acquired Paramount Global last year in an $8 billion deal. Ellison, 43, pursued the Warner Bros. Discovery assets even after the company signed a $72 billion deal with Netflix, and WBD rejected several earlier offers from Paramount Skydance before Ellison on Thursday boosted the purchase price from $30 to $31 a share.
David Ellison framed the transaction around scale and complementary capabilities, saying, "By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders — and we couldn’t be more excited for what’s ahead. "
How the bidding war ended: Netflix withdraws and a $2. 8 billion payment
The agreement was signed just a day after Netflix abruptly announced it was pulling out of the bidding war for Warner Bros. Discovery’s studio and streaming assets. Netflix co-CEOs Ted Sarandos and Greg Peters said that "this transaction was always 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, noted in a Securities and Exchange Commission filing.
Executives’ reactions and questions about integration
David Zaslav, the president and chief executive of Warner Bros. Discovery, said he was "very pleased with the outcome we achieved for WBD shareholders and the entertainment industry. " Zaslav added, "Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors. We look forward to working with Paramount to complete this historic transaction. "
If approved, the merger would unite two storied Hollywood film studios and encompass 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. Paramount Skydance has not yet provided specifics on how its properties would be combined with those of WBD. It remains unclear whether Ell
