Oracle's Larry Ellison Eyes Warner Bros. Discovery Acquisition Following Paramount Deal

Larry Ellison, co-founder of Oracle, is reportedly considering a bid to purchase Warner Bros. Discovery, the media giant behind HBO, CNN, and Warner Bros. Studios. This follows his recent acquisition of Paramount Global with his son David. Ellison's wealth and influence give him the autonomy to pursue bold strategies without needing to appease investors or a skeptical boardroom, similar to Elon Musk's acquisition of Twitter. WBD's stock has surged since the news of Ellison's interest, adding $10 billion in market value.

Larry Ellison, the co-founder of Oracle and the world's richest man, is reportedly considering a bid to purchase Warner Bros. Discovery (WBD), the media giant behind HBO, CNN, and Warner Bros. Studios. This move follows his recent acquisition of Paramount Global with his son David. Ellison's wealth and influence give him the autonomy to pursue bold strategies, similar to Elon Musk's acquisition of Twitter.

The Wall Street Journal reported that Ellison is preparing a majority cash bid for all of WBD's assets, including its cable networks and movie studio. The bid is said to be backed by Ellison and his son David, who is now the CEO of Paramount. Since the news of Ellison's interest, WBD's stock has surged, adding $10 billion in market value. Warner Bros. Discovery's stock closed up nearly 30% at the end of Thursday’s trading session, while Paramount was up more than 7%, hitting new 52-week highs of $17.24 and $87.89 per share, respectively Paramount Skydance Is Preparing A Bid To Purchase Warner Bros. Discovery (And DC Studios)^[1].

The potential merger would give both Paramount and WBD much-needed scale and an increased arsenal of content at a time when they have lagged behind Netflix and Disney in the streaming wars. Combined, the new entity would have a significant presence in both the traditional media and streaming sectors.

However, the deal is not without its challenges. Industry insiders point out that snapping up Warner Bros. Discovery would likely demand hefty private funding, considering the deal’s massive scope and the constraints of Paramount Skydance’s financial reserves. Additionally, the studio consolidations have been put through so much scrutiny, and another major deal could face regulatory hurdles.

Ellison's strategy appears to be driven by a desire to create a next-generation media giant, similar to what Disney and Netflix have achieved. However, the success of such a merger would depend on the ability to integrate the two companies' assets and streamline their operations effectively.

For now, the market is reacting positively to the news, with both companies' stocks surging. However, the deal's success will ultimately depend on its ability to create value for shareholders and deliver on its promises of increased content and scale.