Larry Ellison’s wealth has been fluctuating, yet he’s still committed to fully supporting his son David Ellison’s substantial bid to acquire Warner Bros. Discovery (WBD). This comes amidst speculation regarding David’s role in the financing process for the $56 billion deal.
David was long considered the likely candidate to secure WBD, which encompasses Warner Bros. Studios, HBO, and CNN. His interest was bolstered after expressing a desire to finalize the $8 billion acquisition of Paramount to create Paramount Skydance. However, recent developments have raised questions within WBD itself about whether Larry’s financial backing will be solid.
Since peaking at over $400 billion, Larry’s net worth has taken a hit of over $130 billion due to declining tech stocks. This has made insiders a bit uneasy about David’s chances without his father’s financial support, especially given the shaky state of Paramount Skydance’s balance sheet.
Despite the speculation, campaign officials close to the situation have stated that Larry intends to fully back his son’s bid, potentially through cash or Oracle stock financing.
A source familiar with the situation mentioned that Larry’s recent market losses are not a significant concern regarding his overall wealth. “Larry has numerous ways to assist, and he’s all in on this,” the source clarified.
A representative for Paramount Skydance opted not to comment, and Larry did not respond to inquiries via email.
As the bidding war for WBD intensifies—a company that contains essential studios and a major streaming service—WBD CEO David Zaslav has been pursuing offers from top media and tech firms, including Netflix and Amazon.
David’s current offer is notably lower than Zaslav’s asking price, which is up to $30 per share. Zaslav aims to finalize the sale by Christmas, warning that without an agreement, WBD might split into two units next year.
The tech market’s downturn has significantly impacted Larry Ellison’s assets, reducing his net worth to approximately $267 billion since early September, right as David expressed interest in WBD.
Investor concerns about an AI bubble have resulted in a sell-off of tech stocks, including a nearly 30% decline in Oracle’s share price recently. Earlier this week, shares in Paramount Skydance surged following the release of its first financial results since the Ellisons’ acquisition, even as its financial standing remains fragile.
The company’s recent quarter reported losses and a weak cash position of about $3 billion, alongside a debt of $13 billion. As previously noted, private equity firm Apollo is collaborating with Paramount Skydance on debt financing.
Larry Ellison, co-founder of Oracle and its largest shareholder, has historically sold limited amounts of his stock, often for tax reasons. This has led many to speculate whether he might be raising funds for the WBD acquisition.
Insiders have indicated that Larry didn’t reach his current status by investing in faltering industries. After starting Oracle from the ground up, he made strategic acquisitions to grow the company, including the significant purchase of Sun Microsystems in 2010. Although Oracle has recently invested heavily in AI, it now faces challenges.
Analyst Rich Greenfield from Lightshed Partners posits that if the Ellisons possess significant funds, acquiring another traditional media company could be a valuable move for them.
