Larry Ellison's $70B Warner Bros bid echoes Musk's Twitter takeover
What's the story
Larry Ellison, the co-founder of Oracle, is said to be interested in acquiring Warner Bros. Discovery (WBD) in a deal what could be valued at $70 billion. The move comes after he helped his son acquire Paramount Global. If successful, this would add HBO and Warner Bros. Studios to Ellison's media empire. The news has already resulted in a significant increase in WBD's market value, adding nearly $10 billion.
Similarities
Ellison's approach to acquisitions
Ellison's interest in WBD is similar to Elon Musk's $44 billion acquisition of Twitter in 2022. Both tech moguls are using their immense wealth to take over major cultural institutions, not necessarily for business reasons but because they can. When Musk bought Twitter, he made a bold offer well above its market value and dared anyone to outbid him. Despite internal chaos and advertiser pullback, his wealth insulated him from the consequences.
Advantage
Ellison's financial and structural advantages
Ellison's net worth recently made him the world's second richest person, giving him the resources and autonomy to push a deal forward, regardless of market reaction. For a day, he surpassed Musk to become the world's richest person. Unlike competitors such as Disney or Comcast, who are publicly traded and have to appease investors or a skeptical boardroom, the Ellisons effectively control Paramount despite it being a public company. This allows them to pursue bold strategies without such constraints.
Uncertainty
Potential political implications of an Ellison-led media empire
Ellison is a known Republican donor and supporter of US President Donald Trump, while his son David has previously supported Democrats. This mix of political affiliations has left analysts uncertain about how a combined Paramount-WBD media empire might be run. Assets like CNN and CBS News could face strategic changes or be sold off entirely after the acquisition.