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This time could be different - Ellison knows the industry from the inside, has deeper financial resources than any prior Warner owner, and the timing for betting on consolidation is on trend. But the $96 billion debt mountain won't vanish just because the new owner is more confident.
AOL had just acquired Time Warner - Warner Bros.' parent - for $165 billion, the largest deal in US history at the time. He called it “the pivotal moment of the century.”
Two years later, the deal vaporized $155 billion in market value.
In June 2018, Randall Stephenson - AT&T's CEO - also faced the cameras with equal confidence.
AT&T had just completed its takeover of Warner Bros. for $85 billion. This time, the pitch was even more compelling: “telecom giant” + “content empire” = dominance in the digital age.
Four years later, AT&T quietly spun it off. Estimated $200 billion loss for shareholders.
In April 2022, David Zaslav stepped into the CEO role at Warner Bros. Discovery, vowing to build “the world's most creative entertainment company.”
Less than four years later, he's waiting for the next buyer.
From 2000 to 2026, Warner Bros. has changed hands four times.
Each time with a confident CEO, a compelling thesis, and a massive price tag.
Each time leaving a mountain of debt ashes for the next owner.
And in February 2026, David Ellison - son of Oracle founder billionaire Larry Ellison - declared he would break the curse.
Purchase price: $111 billion.
Post-deal debt: ~$96 billion.
Promised synergies: $6 billion/year.
Breakup fee if delayed: $7 billion - nearly double Paramount's full-year 2025 operating profit.
Notably, Netflix had bid $82 billion earlier.
They only wanted the “clean” parts: Warner Bros. studios and HBO Max platform.
Leaving behind the fading traditional TV channels.
WBD's board rejected it. They chose Paramount - the buyer taking it all, including the unwanted parts.
Immediately, Netflix shares surged. The market rewarded the walker-away - the most ominous signal of the deal.
In this week's piece, Viet Hustler dissects the Ellison family's $111 billion deal - from the dramatic Netflix-Paramount bidding war, to the debt math and open questions about Hollywood's future.
Will history repeat: 3 past failures
Quick profiles of the 3 key players: Warner Bros. Discovery, Netflix and Paramount Skydance
Bidding war timeline
Dissecting the $111 Billion Deal: Financial Structure, Future Outlook and Legal Hurdles
Who Wins, Who Loses? - Implications for Global Media
