2 months ago

Warner Bros. Deal Collapse Could Cost Ellisons $9.8 Billion

Warner Bros. Deal Collapse Could Cost Ellisons $9.8 Billion
Warner Bros. Deal Collapse Would Cost the Ellisons $9.8 Billion · livemint.com

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.

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

Sources

Related news