2 months ago
Warner Bros. Deal Collapse Could Cost Ellisons $9.8 Billion
Larry Ellison and his family could have to pay $9.8 billion if a deal for Paramount to buy Warner Bros.
falls apart.
This includes a $7 billion fee to Warner Bros.
and a $2.8 billion fee to Netflix.
Paramount, which is run by Ellison's son David, agreed to this deal but is facing delays due to lawsuits.
If the deal doesn't go through, Ellison has agreed to cover these costs by buying new shares in Paramount.
Paramount wouldn't have to pay extra fees if the deal doesn't happen, but Warner Bros.
would get the $7 billion break-up fee instead.
Ellison's wealth has decreased this year due to concerns about his company, Oracle.
Larry Ellison and his family could owe $9.8 billion if Paramount's deal to buy Warner Bros. collapses.
The $9.8 billion includes a $7 billion termination fee to Warner Bros. and a $2.8 billion fee to Netflix.
Paramount agreed to postpone the deal until next June or the resolution of lawsuits.
Ellison agreed to cover the fees by purchasing new Class B shares of Paramount at $16.02 each.
Paramount's current stock price is about $8 per share.
- Who
- Larry Ellison and his family, Paramount Skydance Corp., Warner Bros. Discovery Inc., Netflix Inc.
- What
- Potential financial implications of the Warner Bros. deal collapse
- Where
- United States
- When
- Deal postponement until next June or resolution of lawsuits
- Why
- Regulatory issues and lawsuits seeking to block the merger
Paramount's Financial Burden
Ellison's Guarantee
Financial Responsibility
Paramount's Financial Burden
Paramount would not be required to take on new borrowings to fund the fees if the deal collapses.
Ellison's Guarantee
Larry Ellison and his family trust would reimburse Paramount for the $7 billion termination fee and the $2.8 billion Netflix fee.
Key facts
- Termination Fee
- $7 billion
- Netflix Fee
- $2.8 billion
- Total Potential Cost to Ellisons
- $9.8 billion
- Paramount's Current Stock Price
- $8 per share
- Ellison's Guarantee
- New Class B shares at $16.02 each
- Ticking Fees
- $650 million per quarter starting Oct. 1
- Ellison's Net Worth Decline
- 31% to $163 billion








