Larry Ellison Personally Guaranteed $40.4 Billion of His Son's Warner Bros. Discovery Deal; 12 States Sue to Block It, Oracle Stock Falls 34%
Oracle founder Larry Ellison provided an irrevocable $40.4 billion personal guarantee to back his son David Ellison's bid to acquire Warner Bros. Discovery through Paramount Skydance in a roughly $110 billion deal. A coalition of 12 state attorneys general has sued to block the merger, arguing it would reduce competition in theatrical distribution and cable licensing, leading to higher prices and fewer films. Simultaneously, Oracle's stock has plunged 34% in July 2026, wiping out an estimated $213 billion of Ellison's net worth and dropping him from the world's second-richest person to roughly eighth. The stock decline is attributed to market skepticism about Oracle's massive AI and cloud infrastructure spending. The intertwined risks of Ellison's personal guarantee, Oracle's stock performance, and the legal challenge create significant uncertainty for investors in Oracle, Warner Bros. Discovery, and Paramount Skydance.
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