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Larry Ellison pledges $40-billion personal guarantee for Paramount’s Warner Bros. bid

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Larry Ellison pledges -billion personal guarantee for Paramount’s Warner Bros. bid

Billionaire Larry Ellison has stepped up, agreeing to personally guarantee part of Paramount’s bid for rival Warner Bros. Discovery.

Ellison’s personal guarantee of $40.4 billion in equity, disclosed Monday, ups the ante in the acrimonious auction for Warner Bros. movie and TV studios, HBO, CNN and Food Network.

Ellison, whose son David Ellison is Paramount’s chief executive, agreed not to revoke the Ellison family trust or adversely transfer its assets while the Warner Bros. transaction is pending. Paramount’s $30-a-share offer remains unchanged.

Warner‘s board earlier this month awarded the prize to Netflix. The board rejected Paramount’s $108.4-billion deal, largely over concerns about the perceived shakiness of Paramount’s financing.

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Paramount then launched a hostile takeover, appealing directly to Warner shareholders, offering them $30 a share. Paramount on Monday extended the deadline to Jan. 21 for Warner investors to tender their shares.

“We amended this Offer to address Warner Bros. stated concerns regarding the Prior Proposal and the December 8 Offer,” Paramount said in a Monday Securities & Exchange Commission filing. “Mr. Larry Ellison is providing a personal guarantee of the Ellison Trust’s $40.4 billion funding obligation.”

Warner Bros. Discovery did not provide an immediate comment.

Warner stock jumped 3.5% on the news to $28.75. Paramount shares climbed 4.2% to $13.61 and Netflix fell 1.2% to $93.23.

The Ellison family acquired the controlling stake in Paramount in August. The family launched their pursuit of Warner Bros. in September but Warner’s board unanimously rejected six Paramount proposals over the last three months.

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Paramount started with a $19 a share bid for the entire company. Netflix has offered $27.75 a share and only wants the Burbank studios, HBO and the HBO Max streaming service. The Netflix bid is a mix of cash and stock. It envisions Warner Bros. spinning off its linear cable channels, including CNN, into a new publicly traded company, Discovery Global, by the middle of next year.

Paramount upped its all-cash offer to $30 a share Dec. 4, in the waning hours of the auction.

That night, Warner Bros. Discovery’s board voted unanimously to accept Netflix’s $72-billion offer (the total value of the deal is $82.7 billion). The company, in regulatory filings, has cited Netflix’s stronger financial position.

Since then, Paramount executives launched their hostile bid and held meetings with Warner investors in New York, where they echoed the proposal they’d submitted in the closing hours of the auction.

On Monday, Paramount also agreed to increase the termination fee to $5.8 billion from $5 billion, matching the one that Netflix offered. Paramount would have to pay Warner that amount should the deal collapse.

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Three Middle Eastern sovereign wealth funds representing royal families in Saudi Arabia, Qatar and Abu Dhabi have agreed to provide $24 billion of the $40.4-billion equity component that Ellison is backing.

The Ellison family has agreed to cover $11.8-billion of that. Initially, Paramount’s bid included the private equity firm of Jared Kushner, President Trump’s son-in-law, but Kushner withdrew his firm last week. Previously, Paramount dropped the Chinese firm Tencent from its financing consortium over regulatory concerns.

“In an effort to address Warner Bros.’s amorphous need for ‘flexibility’ in interim operations, Paramount’s revised proposed merger agreement offers further improved flexibility to Warner Bros. on debt refinancing transactions, representations and interim operating covenants,” Paramount said in its statement.

Paramount confirmed that the Ellison family trust owns about 1.16 billion shares of Oracle common stock and that all material liabilities are publicly disclosed.

“The Ellison Trust has financial resources well in excess of what would be required to meet its commitments to be entered into in connection with the Offer and the second-step merger [with Paramount], including, among many other assets and financial resources available to it,” Paramount said.

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Paramount has been aggressively pursuing Warner Bros. for months, yearning for the scale the Warner assets would bring the company that, before the Ellison takeover, had suffered from years of under-investment.

David Ellison was startled earlier this month when the Warner Bros. board swiftly agreed to a deal with Netflix for $82.7 billion, including some of Warner’s debt, for the streaming and studio assets. He alleged during a CNBC appearance that the Warner Bros. board had failed to seriously consider the merits of his family’s bid.

Paramount subsequently launched its hostile takeover offer in a direct appeal to shareholders. The Warner Bros. board urged shareholders to reject Paramount’s offer, which includes $54 billion in debt commitments, deeming it “inferior” and “inadequate.” The board singled out what it viewed as uncertain financing and the risk implicit in a revocable trust that could cause Paramount to terminate the deal at any time.

Warner added that its shareholders also would have equity in the new Discovery Global, which Warner believes could fetch about $3 a share. Paramount has said its deal is more straightforward. The Ellisons, who enjoy friendly relations with Trump, have told shareholders their deal would face a smoother regulatory review.

Larry Ellison and Trump are on friendly terms, and Ellison’s software company Oracle is part of a consortium taking over social media app TikTok. That deal is expected to close next month.

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Trump’s support was also key to the Ellison family’s takeover of Paramount. Before that deal was approved, Paramount agreed to pay Trump $16 million to settle a lawsuit over “60 Minutes” edits that most legal experts called frivolous.

Trump has said that he wants CNN to be included in the Warner Bros. sale. Trump has long chafed over CNN’s coverage.

In the past, the president indicated that he favored Paramount’s pursuit of Warner Bros. — but he has been more circumspect in recent weeks, making complimentary comments about Netflix Co-Chief Executive Ted Sarandos.

Executives from both Paramount and Netflix have argued that they would be the best owners and use the Warner Bros. library and movie and TV production capabilities to boost their streaming operations.

Netflix also announced Monday that it has refinanced part of a $59-billion bridge loan with cheaper and longer-term debt.

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Bloomberg contributed to this report.

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Video: Fed Chair Responds to Inquiry on Building Renovations

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Video: Fed Chair Responds to Inquiry on Building Renovations

new video loaded: Fed Chair Responds to Inquiry on Building Renovations

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Fed Chair Responds to Inquiry on Building Renovations

Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.

“Good evening. This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead, monetary policy will be directed by political pressure or intimidation.” “Well, thank you very much. We’re looking at the construction. Thank you.”

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Federal prosecutors opened an investigation into whether Jerome H. Powell, the Federal Reserve chair, lied to Congress about the scope of renovations of the central bank’s buildings. He called the probe “unprecedented” in a rare video message.

By Nailah Morgan

January 12, 2026

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San Antonio ends its abortion travel fund after new state law, legal action

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San Antonio ends its abortion travel fund after new state law, legal action

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San Antonio has shut down its out-of-state abortion travel fund after a new Texas law that prohibits the use of public funds to cover abortions and a lawsuit from the state challenging the city’s fund.

City Council members last year approved $100,000 for its Reproductive Justice Fund to support abortion-related travel, prompting Texas Attorney General Ken Paxton to sue over allegations that the city was “transparently attempting to undermine and subvert Texas law and public policy.”

Paxton claimed victory in the lawsuit on Friday after the case was dismissed without a finding for either side.

WYOMING SUPREME COURT RULES LAWS RESTRICTING ABORTION VIOLATE STATE CONSTITUTION

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Texas Attorney General Ken Paxton claimed victory in the lawsuit after the case was dismissed without a finding for either side. (Hannah Beier/Bloomberg via Getty Images)

“Texas respects the sanctity of unborn life, and I will always do everything in my power to prevent radicals from manipulating the system to murder innocent babies,” Paxton said in a statement. “It is illegal for cities to fund abortion tourism with taxpayer funds. San Antonio’s unlawful attempt to cover the travel and other expenses for out-of-state abortions has now officially been defeated.”

But San Antonio’s city attorney argued that the city did nothing wrong and pushed back on Paxton’s claim that the state won the lawsuit.

“This litigation was both initiated and abandoned by the State of Texas,” the San Antonio city attorney’s office said in a statement to The Texas Tribune. “In other words, the City did not drop any claims; the State of Texas, through the Texas Office of the Attorney General, dropped its claims.”

Texas Attorney General Ken Paxton said he will continue opposing the use of public funds for abortion-related travel. (Justin Lane/Reuters)

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Paxton’s lawsuit argued that the travel fund violates the gift clause of the Texas Constitution. The state’s 15th Court of Appeals sided with Paxton and granted a temporary injunction in June to block the city from disbursing the fund while the case moved forward.

Gov. Greg Abbott in August signed into law Senate Bill 33, which bans the use of public money to fund “logistical support” for abortion. The law also allows Texas residents to file a civil suit if they believe a city violated the law.

“The City believed the law, prior to the passage of SB 33, allowed the uses of the fund for out-of-state abortion travel that were discussed publicly,” the city attorney’s office said in its statement. “After SB 33 became law and no longer allowed those uses, the City did not proceed with the procurement of those specific uses—consistent with its intent all along that it would follow the law.”

TRUMP URGES GOP TO BE ‘FLEXIBLE’ ON HYDE AMENDMENT, IGNITING BACKLASH FROM PRO-LIFE ALLIES

Texas Gov. Greg Abbott signed a law in August that blocks cities from using public money to help cover travel or other costs related to abortion. (Antranik Tavitian/Reuters)

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The broader Reproductive Justice Fund remains, but it is restricted to non-abortion services such as home pregnancy tests, emergency contraception and STI testing.

The city of Austin also shut down its abortion travel fund after the law was signed. Austin had allocated $400,000 to its Reproductive Healthcare Logistics Fund in 2024 to help women traveling to other states for an abortion with funding for travel, food and lodging.

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California Atty. Gen. Rob Bonta opts against running for governor. Again.

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California Atty. Gen. Rob Bonta opts against running for governor. Again.

California Atty. Gen. Rob Bonta announced Sunday that he would not run for California governor, a decision grounded in his belief that his legal efforts combating the Trump administration as the state’s top prosecutor are paramount at this moment in history.

“Watching this dystopian horror come to life has reaffirmed something I feel in every fiber of my being: in this moment, my place is here — shielding Californians from the most brazen attacks on our rights and our families,” Bonta said in a statement. “My vision for the California Department of Justice is that we remain the nation’s largest and most powerful check on power.”

Bonta said that President Trump’s blocking of welfare funds to California and the fatal shooting of a Minnesota mother of three last week by a federal immigration agent cemented his decision to seek reelection to his current post, according to Politico, which first reported that Bonta would not run for governor.

Bonta, 53, a former state lawmaker and a close political ally to Gov. Gavin Newsom, has served as the state’s top law enforcement official since Newsom appointed him to the position in 2021. In the last year, his office has sued the Trump administration more than 50 times — a track record that would probably have served him well had he decided to run in a state where Trump has lost three times and has sky-high disapproval ratings.

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Bonta in 2024 said that he was considering running. Then in February he announced he had ruled it out and was focused instead on doing the job of attorney general, which he considers especially important under the Trump administration. Then, both former Vice President Kamala Harris and Sen. Alex Padilla (D-Calif.) announced they would not run for governor, and Bonta began reconsidering, he said.

“I had two horses in the governor’s race already,” Bonta told The Times in November. “They decided not to get involved in the end. … The race is fundamentally different today, right?”

The race for California governor remains wide open. Newsom is serving the final year of his second term and is barred from running again because of term limits. Newsom has said he is considering a run for president in 2028.

Former Rep. Katie Porter — an early leader in polls — late last year faltered after videos emerged of her screaming at an aide and berating a reporter. The videos contributed to her dropping behind Riverside County Sheriff Chad Bianco, a Republican, in a November poll released by the UC Berkeley Institute of Governmental Studies and co-sponsored by The Times.

Porter rebounded a bit toward the end of the year, a poll by the Public Policy Institute of California showed, however none of the candidates has secured a majority of support and many voters remain undecided.

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California hasn’t elected a Republican governor since 2006, Democrats heavily outnumber Republicans in the state, and many are seething with anger over Trump and looking for Democratic candidates willing to fight back against the current administration.

Bonta has faced questions in recent months about spending about $468,000 in campaign funds on legal advice last year as he spoke to federal investigators about alleged corruption involving former Oakland Mayor Sheng Thao, who was charged in an alleged bribery scheme involving local businessmen David Trung Duong and Andy Hung Duong. All three have pleaded not guilty.

According to his political consultant Dan Newman, Bonta — who had received campaign donations from the Duong family — was approached by investigators because he was initially viewed as a “possible victim” in the alleged scheme, though that was later ruled out. Bonta has since returned $155,000 in campaign contributions from the Duong family, according to news reports.

Bonta is the son of civil rights activists Warren Bonta, a white native Californian, and Cynthia Bonta, a native of the Philippines who immigrated to the U.S. on a scholarship in 1965. Bonta, a U.S. citizen, was born in Quezon City, Philippines, in 1972, when his parents were working there as missionaries, and immigrated with his family to California as an infant.

In 2012, Bonta was elected to represent Oakland, Alameda and San Leandro as the first Filipino American to serve in California’s Legislature. In Sacramento, he pursued a string of criminal justice reforms and developed a record as one of the body’s most liberal members.

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Bonta is married to Assemblywoman Mia Bonta (D-Alameda), who succeeded him in the state Assembly, and the couple have three children.

Times staff writer Dakota Smith contributed to this report.

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