LOS ANGELES: Larry Ellison and his family would be on the hook for US$9.8bil if Paramount Skydance Corp’s deal to buy Warner Bros Discovery Inc falls apart.
Paramount, which is run by Larry’s son David Ellison, agreed to pay Warner Bros a US$7bil termination fee if its deal to buy the entertainment giant collapses due to regulatory issues.
In February, Paramount paid US$2.8bil to Netflix Inc to get the streaming company to abandon its pursuit of Warner Bros.
While those fees have been reported, the specifics of who pays what are found deep in company filings.
The potential bill is facing renewed attention after Paramount agreed last week to postpone closing until next June or five days after the resolution of lawsuits seeking to block the proposed merger that were brought by 12 states and the Writers Guild of America.
Paramount, already heavily in debt, wouldn’t be required to take on new borrowings to fund the fees.
If the Warner Bros deal doesn’t go through, Larry Ellison and a family trust would reimburse Paramount for the US$7bil termination fee and the US$2.8bil Netflix fee. — Bloomberg
