Good News Everyone!

It looks like the Ellison nepo-baby will have to delay the takeover of Warner Brothers, because it was clear that if they were not to do so voluntarily, then the judge would have made it mandatory.

I'm not sure whether the State Attorneys General suing to stop the deal will prevail, it would have been a long shot a decade ago, but antitrust law has shifted a lot in the past 10 years,

Paramount said on Friday that it had agreed to halt its merger with Warner Bros. Discovery until next June at the latest while a judge considers a lawsuit from state attorneys general who sued to block the deal. The delay is the latest curveball in a deal that would remake Hollywood.

In a legal filing, Paramount and the state attorneys general said that they had reached an agreement to freeze the $111 billion merger while the case works its way through court, extending a shorter pause imposed this week by a federal judge in California. The merger agreement expires on June 4, 2027, if the deal has not closed by that date.

The delay could be costly for Paramount. The company, run by the tech scion David Ellison, has agreed to pay Warner Bros. Discovery shareholders a fee of $650 million for every quarter that the deal does not close, beginning in October.

(Emphasis mine)

Given that Oracle corporation, the source of his family's wealth via his father is now approaching junk bond status, this may end up being more than just a delay.

………

The coalition of 12 states led by California includes New York, Connecticut, Oregon and Arizona. California Attorney General Rob Bonta, who led the states, said in a statement that the delay was “great news for audiences.” Letitia James, the New York attorney general, called the freeze “a crucial victory” in a statement.

The deal would unite under one roof two major movie studios, the streaming services HBO Max and Paramount+ and networks including CBS and CNN. Mr. Ellison has aggressively pushed to acquire Warner Bros., ultimately outbidding Netflix after proposing a handful of escalating offers.

The deal was already a big bet for David Ellison, his partners at RedBird Capital and his father, Larry Ellison, who personally guaranteed the acquisition. The combined company is expected to carry about $80 billion in debt, a daunting burden for the younger Mr. Ellison. Now, with the delay potentially triggering hundreds of millions of dollars in additional fees, the deal could become even less attractive.

I dunno, the deal is pretty f%$#ing ugly right now.

The merits of the deal are monopoly rents and currying political favor with Trump and his Evil Minions™.

This deal is pretty horrible for the rest of us.

Here is hoping that Oracle ends up in receivership before the deal goes through.