00:00Back at it again, Warner Brothers is saying no thanks to Paramount's $108 billion bid saying the financing isn't as solid as advertised.
00:08Now, despite initially saying their bid would be an all-cash deal, Paramount now claims billionaire Larry Ellison's revocable trust is backing the deal.
00:17Now, that's a very inside baseball finance term, but a revocable trust is a flexible fund that holds assets like cash, stocks, or property, which can be changed or removed at any time.
00:27It's a legal framework that's usually used in real estate transactions, not for company acquisitions.
00:33And since its assets don't need to be publicly disclosed, what's inside could be anything.
00:38It's kind of the equivalent of me giving you my wallet and saying, trust me, there's $700 in here, but when you open it up, it's all Kohl's cash and Chuck E. Cheese gift cards.
00:45That's why Warner Brothers sees Paramount's financing as shaky compared to Netflix's fixed cash and stock deal.
00:51So experts are predicting Warner Brothers is going the safer route if the Ellison family doesn't lock in their own money.
00:57Now, Paramount insists the trust holds over $250 billion in assets, including a massive Oracle stake, and calls Warner Brothers' doubts absurd.
01:05But analysts are saying this marks a turning point.
01:07It's not just about who pays more, but whether the financing behind these mega deals is truly secure.
01:13So as this battle for the WB continues, let's take a temp check.
01:16Do you feel like we're getting the full picture on how these bids are being financed?
01:19Do you think Paramount or Netflix have more to reveal?
01:22Or do you want either deal to happen at all?
01:24Drop your thoughts in the comments and follow us here for more.
Comments