What went wrong for Paramount

Larry Ellison made a bold move to acquire Warner. It wasn’t enough.

- Meg James and Stacy Perman

Oracle founder Larry Ellison was on the cusp of conquering Hollywood.

Just four months earlier, he had bankrolled his son David's $8-billion acquisition of storied Paramount Pictures.

Now the Ellison family had designs on scooping up Warner Bros. Discovery, too, offering to buy the entire company for at least $60 billion. The bold play had suddenly thrust this Silicon Valley titan and his son — chief executive of the newly merged Paramount Skydance — into one of the most powerful positions in the film and TV industry.

By most outward appearances, Warner Bros. Discovery was theirs for the taking. Wall Street analysts, Hollywood insiders and even some of the other bidders expected Paramount to prevail. After all, it was backed by one of the world’s richest men. And it even had the blessing of President Trump, who openly expressed his preference for the Paramount bid.

But Ellison's crowning moment was ruined when Netflix swooped in Friday announcing its own blockbuster deal.

The streamer snapped up Warner Bros. in an $82.7-billion deal for the Burbank-based film and television studios, HBO Max and HBO, delivering a massive blow to Ellison and his son.

In the Paramount bid, Larry Ellison was once again the primary backer.

But the Warner Bros. Discovery board believed the Netflix offer of $27.75 a share, which did not include CNN or other basic cable channels, was a better deal for shareholders.

The announcement stunned many who had predicted that Paramount would prevail in the contentious auction. It also marked a rare defeat for Ellison, who was outmaneuvered by none other than Netflix co-Chief Executive Ted Sarandos and his team.

Analysts and multiple auction insiders told The Times several factors complicated the process, including Paramount's low-ball offers and hubris.