Bloomberg Intelligence Larry Ellison’s Guarantee Ups Warner Bros. Stakes to a New Level
Dec 22, 2025
In this discussion, Stephen Flynn, a Senior Credit Analyst, unpacks Larry Ellison's staggering $40.4 billion personal guarantee to back Paramount's bid for Warner Bros. He highlights the implications this guarantee has for financial ratings and creditor outcomes. Jodi Lurie dives into the cruising industry's recovery, revealing insights on customer behavior and cash flows compared to theme parks. Brian Campbell, from The Conference Board, addresses rising CEO turnover rates and the growing influence of shareholder activism in corporate governance.
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Bondholders Might Favor Paramount Skydance
- Bondholders may prefer the Paramount Skydance transaction because incoming equity supports the company and secured debt sits senior.
- A Netflix-led breakup sale could leave bondholders stuck with a spun-out, highly leveraged global networks business with declining fundamentals.
Ellison Pledge Doesn't Alter Oracle Credit
- Larry Ellison's personal commitment is equity-based and doesn't directly change Oracle's credit profile.
- Credit investors focus on market value of Oracle shares backing the guarantee rather than moving Oracle's corporate debt risk.
Listen To The Fed Holistically
- Take Fed speakers holistically and avoid overweighting a single member's comments.
- Watch middling voters like John Williams for the clearest guide to near-term policy intentions.