BUSINESS

United States antitrust suit, Oracle slump threaten Warner merger

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United States – Oracle founder Larry Ellison’s $40.4 billion personal equity guarantee for his son David’s bid to merge Paramount’s Skydance with Warner Bros. Discovery is under acute pressure as regulators and markets turn against the proposed $110 billion deal. A coalition of 12 U.S. state attorneys general has filed a lawsuit seeking to block the transaction on antitrust grounds, arguing that combining two of Hollywood’s top five studios would restrict competition in theatrical film distribution and cable licensing, leading to fewer releases and higher prices for consumers. A federal judge has already suspended the merger until mid-August to consider the states’ request for a preliminary injunction, while Paramount has agreed not to close the deal until a court rules or until June 1, 2027, whichever comes first. United States – The legal challenge coincides with a sharp collapse in Oracle’s share price, which has fallen roughly 34% in 2026 and nearly 50% since early June, hitting a new 52-week low of $114.75 on Friday. The sell-off has wiped out an estimated $213 billion from Ellison’s net worth, cutting his fortune from a peak near $388 billion to about $175 billion and pushing him from the world’s second-richest person to around eighth. Because Ellison’s $40.4 billion guarantee is anchored in his Oracle holdings, the market rout has weakened the financial backstop supporting the entire merger, as investors question whether Oracle’s heavy spending on artificial intelligence and cloud infrastructure will deliver the returns needed to justify its current strategy.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

Early 2026 Ellison guarantees $40.4 billion equity
Early June 2026 Oracle shares begin steep slide
2026 Oracle stock falls roughly thirty-four percent
Friday Oracle hits new 52-week trading low
Recently Ellison wealth drops to about $175 billion
Recently twelve states sue to block merger
Mid-August 2026 judge suspends deal for review
By June 1 2027 outside deadline set for closing

Why This Matters to You

This merger could impact your wallet. If it goes through, fewer film releases and higher cable prices could be on the horizon. Keep an eye on your cable bill and movie ticket prices.

The Bottom Line

Larry Ellison's financial backing of the merger is shaky due to Oracle's falling share price. The deal is also under legal scrutiny. If you own Oracle stocks, it might be worth reviewing your portfolio. Send this to someone who loves movies or owns tech stocks.