Paramount and Ellisons May Lack Funds for WBD Bid: Analyst

Paramount Skydance, headed by CEO David Ellison, has been eyeing a potential acquisition of Warner Bros. Discovery, as reported earlier this month. Despite the rumors, Paramount Skydance has not yet made a formal bid to purchase the parent company of HBO Max.

In a recent discussion with media and technology analyst Rich Greenfield, the topic of whether Paramount will make a move to acquire Warner Bros. was explored. Greenfield raised concerns about the financial feasibility of such a deal, pointing out that Larry Ellison, co-founder of Oracle and David Ellison’s father, may not have the resources to make a cash purchase of that magnitude.

While there is apparent interest from Paramount in acquiring Warner Bros. before it potentially breaks up, the reality is that securing the necessary funds for a deal of this size could be a significant challenge. With reports suggesting a cash purchase in the range of 40 to 50 billion dollars, Greenfield questions where the Ellisons would source the capital needed for such a transaction.

Ultimately, while the idea of Paramount acquiring Warner Bros. may seem appealing, the practicality of making such a significant cash purchase raises doubts about the likelihood of a bid materializing in the near future. As the situation continues to unfold, it remains uncertain whether Paramount Skydance will move forward with its reported interest in acquiring Warner Bros. Discovery.