"You might think so - especially since $10 billion of that came from the Saudi government. That's the same government that US intelligence said killed a Washington Post journalist in 2018. The kind of partner you might think a major American media conglomerate would want to keep at arm's length. But that's not a problem WBD raises in its newest communication to shareholders, where it urges them to take the deal offered by Netflix instead."
"In a regulatory filing that tells the backstory of the proposed WBD sale, WBD execs and their reps repeatedly told the Ellisons they wanted a firm commitment that Larry Ellison - currently the world's 5th-richest man, with an estimated net worth of $243 billion - would guarantee the deal himself. Instead, WBD argues, the Ellisons never gave them the assurances they wanted."
"The filing does bring up the fact that money from Middle Eastern sovereign wealth funds would likely complicate regulatory issues for a proposed Ellison/Paramount deal. (Ditto for a proposed $1 billion investment from China's Tencent, which the Ellisons later took out of their proposal.) But those are presented as technical hurdles. Not moral or patriotic dealbreakers. And they're just part of a laundry list of complaints WBD makes about the Ellisons."
Warner Bros. Discovery objects to the Ellisons' bid because the Ellisons did not provide the firm personal guarantee that WBD sought from Larry Ellison. The Ellisons proposed financing that included $24 billion from Middle Eastern investors, including $10 billion tied to the Saudi government, and a proposed $1 billion Tencent investment that was later removed. WBD flags regulatory complications from sovereign funds but treats them as technical hurdles rather than moral disqualifiers. WBD also cites other complaints, including a confidentiality breach via a tweet and a broader list of concerns. WBD urges shareholders to accept Netflix's offer as superior.
Read at Business Insider
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