Larry Ellison, the founder of Oracle, recently aimed to shake up Hollywood. After backing his son David’s massive $8 billion purchase of Paramount Pictures, the Ellison family set their sights on acquiring Warner Bros. Discovery for over $60 billion. This move positioned them as major players in the film and TV industry.
At first, many thought Warner Bros. was in their grasp. Analysts and insiders believed Paramount had the edge, primarily due to Ellison’s wealth and influence. There was even buzz that former President Trump favored their bid. However, everything changed when Netflix announced its own staggering $82.7 billion deal for Warner Bros.
The Netflix acquisition left Paramount and the Ellison family reeling. The Warner Bros. board saw Netflix’s offer of $27.75 per share as more appealing, despite excluding CNN and other cable channels. Analysts suggested that Paramount’s overly optimistic bids and miscalculations allowed Netflix to slip in and seize the opportunity.
Lloyd Greif, an investment banker in Los Angeles, noted, “This is a bad day for Paramount and for the Ellisons. They were overconfident and underestimated the competition.” Paramount reportedly offered several bids, the first starting at just $19 a share, which the board quickly dismissed. The rift widened when Paramount struggled to meet the escalating price and sought help from private equity.
While Ellison’s ties to Trump initially seemed advantageous, they turned out to be a liability in some Hollywood circles. Concerns grew over whether relationships with certain political figures might alienate potential investors or collaborators.
Despite the setback, sources say Ellison isn’t ready to back down. Paramount is gearing up for a legal challenge against Warner Bros., alleging that the bidding process was unfair. They are even calling for a review by the SEC and DOJ, citing potential antitrust issues with Netflix’s deal.
As this saga unfolds, experts are considering its impact. Recent research shows that movie studio mergers can lead to fewer choices for consumers, raising concerns about market competition. The growth of platforms like Netflix highlights a rapidly changing landscape in media consumption.
Ellison’s ambitions extend beyond Hollywood. Known for his bold moves in tech, he remains actively involved with Oracle, driving innovation through partnerships in artificial intelligence and cloud computing. At 81, he continues to remain influential, reminding the industry—and the world—that he is far from finished.
In the past, hasn’t Hollywood often seen grand plans dissolve unexpectedly? As the Ellisons regroup, they serve as a stark reminder of the volatile nature of mergers and acquisitions in today’s entertainment landscape, where unpredictability is the only certainty.
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