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Kolkata: As the corporate thriller intensified around the $108-billion hostile bid from Paramount to take over Warner Bros and as the array of banks, billionaires and sovereign-wealth funds around the deal swelled, US President Donald Trump remarked that neither Netflix nor Paramount Skydance are great friends of his. It was clearly an effort to distance himself from both the raider and the target.
Significantly, the stage is set for a riveting thriller with the dramatis following personae lined up -- the US president’s son-in-law, a very large alternative-asset manager and (Larry Ellison) the CEO’s father who once could boast of a fortune similar to that of Elon Musk. Reports indicated that the parties seemed to be coming together for spoiling Netflix Inc.’s deal last week.
Reports said that Paramount CEO David Ellison (son of Larry Ellison) said in a letter to the Warner Bros board that the financing partners his firm would assure of the certainty to conclude the deal successfully. “We are providing you with funds certain from one of the wealthiest families in the world, a domestic counterparty, while also eliminating any cross-conditionality, which should give WBD’s board complete comfort and certainty as to our ability to close in a timely fashion,” he wrote in the letter.
The level of spice rises with the information that the Paramount CEO's father Larry Ellison, 81, and a founder of Oracle Corp, is a friend of Donald Trump and was also labelled by Bloomberg Billionaires Index as the world’s richest person in September this year, when his wealth jumped by $89 billion in a day.
On Dec 8, the board of directors of Warner Bros Discovery said it would review Paramount's offer. However, it did not modify its recommendation with respect to that of Netflix. The board advised the company to "take no action at this time" in regard to the Paramount Skydance proposal.
Incidentally, Paramount has made a $30 per share offer that rests on financing from Affinity Partners, which is an investment firm run by Jared Kushner, who is the son-in-law of Donald Trump. Government-run investment funds of a few West Asian countries will be pitching in too. This is supporter by the Ellison family.
Incidentally, Netflix emerged as the front runner last week after a weeks-long bidding war with Paramount and Comcast. According to reports, it secured a $72-billion equity deal for all of Warner Bros Discovery's TV, film studios and streaming assets. The battle that can ensue could be one of the biggest corporate thrillers of recent years.
