Larry Ellison link: larry ellison’s son leads Paramount Skydance in WBD deal
larry ellison appears indirectly at the center of a major media transaction after Paramount Skydance, led by David Ellison, formally signed an agreement on Friday to acquire Warner Bros. Discovery. The move follows Netflix’s abrupt decision one day earlier to pull out of the bidding war for WBD’s studio and streaming assets.
Larry Ellison’s family connection to deal
Paramount Skydance is led by David Ellison, the son of Silicon Valley billionaire Larry Ellison, a close ally of President Donald Trump. David Ellison, 43, pursued Warner Bros. Discovery assets even after WBD had signed a $72 billion deal with Netflix. The younger Ellison’s Skydance Media acquired Paramount Global last year in an $8 billion deal.
Terms and financial structure
Paramount Skydance’s offer of $31 a share values Warner Bros. Discovery at roughly $77 billion and includes the Warner Bros. film studio, the HBO Max streaming platform and a portfolio of cable channels, including. The takeover bid, when factoring in WBD’s debt load, comes to a total of more than $110 billion. Netflix’s proposal did not include the cable assets.
Board approvals and timing
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 WBD shareholders, with a vote 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.
Regulatory hurdles and fees
The deal still needs to be approved by regulators, and Democrats in Congress have vowed to scrutinize the transaction. Paramount Skydance’s proposal for WBD includes a $7 billion reverse termination fee if regulators block the deal. Paramount Skydance also paid Netflix a $2. 8 billion termination fee, shown in a Securities and Exchange Commission filing.
Reactions from industry leaders
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. "
David Ellison offered a statement celebrating the combination of the companies’ creative resources: "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, " Ellison said.
The bidding drama escalated late in the process. WBD rejected several offers from Paramount Skydance before Ellison on Thursday boosted the purchase price from $30 to $31 a share. Hours later Netflix announced it would not match Paramount Skydance’s latest offer. 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. " The deal was inked the next day on Friday, just a day after Netflix abruptly announced it was pulling out of the bidding war.
Paramount Skydance has not yet provided specifics on how its properties would be combined with those of WBD; unclear in the provided context.
The proposed merger would unite two storied Hollywood film studios and a sprawling library of intellectual property ranging from "The Godfather" and SpongeBob Squarepants on the Paramount side to "Casablanca" and Batman on the Warner Bros. Discovery side.
As the companies move toward the shareholder vote expected in early spring of 2026, questions remain about regulatory approval and the ultimate structure of the combined businesses.
